obje education company

8/2/2019 Obje Education Company

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MANAGEMENT

SKILLS and

ENTREPRENEURSHIPMBA - Semester One

Lecturer: Dr. Rejendra Kumar

Omer Erkam Karatsanli

L0409KGKG1011

LSC

04 JANUARY 2012

OBJE EDUCATION COMPANY

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Obje Education Company Page 2

Table of Contents

1. Executive Summary ....................................................................................................3

2. Business Description ...................................................................................................3

3. Produce and Services ..................................................................................................4

4. Market Analysis ..........................................................................................................5

5. Competition .................................................................................................................6

6. Marketing Strategy .....................................................................................................6

7. Management ................................................................................................................ 7

8. Organizational Structure ...........................................................................................8

8.1. Personnel Plan .................................................................................................. 8

9. Technology ...................................................................................................................9

10.Financial Plan ..............................................................................................................4

10.1. Break-even Analysis ....................................................................................... 10

10.2. Projected Profit and Loss ................................................................................ 10

10.3. Projected Cash Flow ....................................................................................... 10

10.4. Balance Sheet .................................................................................................. 11

11.Appendices .................................................................................................................12

12.References ..................................................................................................................16


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1. Executive Summary

Obje Education Company, unlike a typical foreign language school, will provide aunique education for foreign language and accommodation through the medium of Obje

Homes. Obje Education is the response to a rising foreign language desire. The community

needs: (1) to learn a useful foreign language, and (2) an accommodation that is clean, safe,

and useful. Obje Education's goal is to present to students a fast, unique, and entertaining

education atmosphere for worldwide education.

An Obje Home will be suitable for two students and one teacher. The foreign

language education will be given at homes. It means education and accommodation will be

together in one place; home. Moreover students and their teacher can be friend, which is of

significant importance to learn real life foreign language.

At the beginning, Obje Education Company will rent the headquarters and decorate

the headquarters, and rent fifty education homes and decorate education homes. Investors will

provide the cost of starting. Customers will be found immediately through the medium of

advertisement and partner agencies. The prime targets of Obje Education Company are

principally to address wealthy people for foreign language education.

The headquarters of Obje Education Company will be Oxford Street, where is the

heart of London. All activities are checked from the headquarters, such as payments,

registrations, staff, and so on. Furthermore, customers can participate in activities via the

internet website, which is also checked from the headquarters.

We are in belief that this system is promising and profitable in the short run. Financial

details were calculated for three years, which are addressed in the financial plan section on

the business plan (Coke, 2002, p. 314).

2. Business Description

Obje Education Company will render serve customers with a strong and reformist

system for efficient foreign language education by home environment and well educated

teachers. Obje Education Company, soon to be located within education homes in various

parts of London-s- city centre, will offer unparalleled and intensive but comfortable and

enjoyable education. Obje Education Company will provide full service for a foreign

education, English lessons, accommodation, nourishment and all kind of social activities.

Obje Education Company will appeal to all individuals whose desire is foreign

language education. The special foreign language homes, and the friendly staff that ObjeEducation Company provides, will interest to the audience that want to learn by living


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foreign languages. This educational format will captivate both younger and older members

of the education community who will expeditiously gain interest in the unique resources like

a home learning (Lancaster, 2011, p. 112.).

Students of Obje Education will stay in Education House that have four bedrooms

and all these rooms for two students and one teacher; a teacher who will be like a friend for

two students. A student will study two hours in one-to-one tuition format, followed by one

hour of conversation with another housemate and teacher. In addition to that they will have

breakfast together between 9-11 am. Totally, each student will study five hours per day with

the teacher.

Obje Education is a privately held Limited Liability Corporation

(http://www.thecompanyltd.com, 2001). Omer Erkam Karatsanli, the constituent of Obje

Education, is the majority owner. Emre Topkara, Sefa Saltabas, all hold minority stock

positions as private investors.

Obje Education will make deals with the strongest education agencies from different

countries all around the world so as to bring students to London.

Obje Education's start-up costs will cover renting and decorating the headquarters in

Oxford Street, renting and decorating fifty sums of foreign education homes in zone 2, salary

of staff, advertising, making a web site which is suitable for online applications, capital to

cover losses in the first year and up costs.

3. Produce and Services

Obje Education Company, we work to provide the most efficient learning schedule

possible for the foreign language students. Everyday will consist of two hours breakfast time

which is like a free time but also beneficial, followed by two hours English lesson time, and

finally one hour conversation time with a weekly theme - generally about an article or a book.

Most people wake up between 8:00 and 9:00 am. At 9:00, all of the foreign language students

will sit down to have a breakfast until 11:00 am. After the breakfast, the English lessons will

start. Each day, the program begins with the two hours English lesson for first student andthen moves to one hour conversation for both students. Once and for all, second student takes

two hours English lesson. The times can change if the teacher and students agree to change.

The program is not affected by bank holidays, weather conditions and so on. The

household can even study their lessons at the weekend if the teacher is suitable. During the

lesson, publications by Oxford, and the internet are used. At least once each week, the

household will watch an original English DVD (brought by the teacher) with subtitles,

together in the evening.

All food served will be meet the guidelines set forth by the Food Standards Agency.(http://www.food.gov.uk, 2003) The officials of Obje Education Company will bring the
http://www.thecompanyltd.com/http://www.food.gov.uk/http://www.food.gov.uk/http://www.thecompanyltd.com/


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necessary foods to education homes i.e. on a weekly basis. In addition, the contracted

company of Obje Education Company Fresh Up Cleaning Company

(http://www.freshupcleaning.co.uk, 2010) will clean our education homes twice a week.

It is a goal of this education that the foreign language students and their teachers can

be friends. After lessons, the foreign language students can study their homework and go

outside or whatever they want.

4. Market Analysis

The foreign language education (especially English) is an increasing section of

todays business world and education circles or even daily life necessitated by the increase in

globalization which is evolution of communication. In London and the surrounding areas,these individuals who are interested in foreign language are mainly between the ages of 16

and 55 years old with a median age of 23.6. The greater part have completed high school and

many have varying degrees of college education. In addition to that the Language Travel

magazine estimates that there were 622,256 Foreign Language students attending foreign

Language schools in the United Kingdom. If we assume that the average number of students

attending accredited and non-accredited institutions is the same, the total number of student

attending any privately operated foreign Language schools stands at 1.168 million, which is

approximately 6% greater than our estimate (http://www.hothousemedia.com, 2011).

During the whole period, the foreign language students spend (most students spend

between 3,000 and 7,000 monthly) a good amount of money for one-to-one English tuition

in the UK. These people are wealthy enough to afford one-to-one private tuition or these

people must work to our partner corporation while they are studying for foreign language.

The research conducted exposes the following:

The inhabitant of foreign language students between 16 and 55 years old is 500.000

within the surrounding the central of London.

%8 (40.000) of these 500.000 students are studying in a one to one education system.

These foreign students seek quality and efficient foreign language education to

improve their skills.

Students of this type is generally do not work, which demonstrates that they have

enough money for foreign education.

Obje Education Homes will serve foreign language students, and be open 24/7 .Students

can come our education homes for our attractive and unique education system with peace of

mind.
http://www.freshupcleaning.co.uk/http://www.freshupcleaning.co.uk/


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5. Competition

There are approximately 532 foreign language schools accredited by Accreditation

UK. English UK estimates there to be some 390 privately operated non-accredited foreign

Language schools in addition to the 532 privately operated accredited institutions. This

implies that there are approximately 912 privately operated accredited and non-accredited

English language schools across the U.K. (http://www.bis.gov.uk, 2011).

However, the main competitors in the high class foreign education are St. Nicholas

College of London, Richmond Language Training, St George International Ltd, Victoria

School of English, and London School of English. These schools are located in or close the

city center area, and target a similar section to Obje Education (i.e. high class, one to one

education and address to the rich people).

Competition from one to one foreign language education comes from locally-owned

businesses as well as national firms. There are lots of foreign language education companies

which give lecture with high class around the world. Larger, foreign language education

schools, such as Zoni Language Centres and ALP could threaten also a competitive to Obje

Education Company, yet Obje Education will stay in the heart of English.

Due to intense competition, foreign language companies must look for methods to

differentiate their position of business from other competitors in order to obtain and resume a

competitive advantage. The constituent of Obje Education Company realizes the demand for

diversification and powerfully believes that combining a foreign language school with daily

life area is the secret of success. The fact that no Education homes are established in London,

presents Obje Education with a chance to seize the window of opportunity and create a

special and profitable niche in the market (Lancaster, 2011, p.99.).

Obje Education Company will be the first foreign language home in the world. Obje

Education will clearly differentiate itself from the strictly normal foreign language schools in

London by providing the customers with unique service that is the golden opportunity to

learn foreign language from your friend at home.

6. Marketing Strategy

Obje Education will position itself as an upscale and unique foreign language

education company in the market of education. It will serve high-quality foreign language

education and accommodation special services at a competitive price which with high class

education companies. Due to the number of foreign language schools in London, it is of

importance that Obje Education sets fair prices for its language learning and accommodation.

Obje Education will use advertising as its main source of high class partner agencies.

Furthermore, ads placed in The Guardian, The Times, The Independent, and The Sun will
http://www.bis.gov.uk/http://www.bis.gov.uk/


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help build customer awareness. Along with the ad, there will be a coupon entitling one to

have a one-day trial course of foreign language education.

The most distinctive aspect of Obje Education is to provide foreign language

education and accommodation together in one place. Therefore, Obje Education will use an

advertising catchy slogan which is "learn English from your friend at home" rather than an

empty slogan. This slogan will show the dichotomy between Obje education and other

competitors (Kotler, 2005, p. 460.).

Education system of Obje Education will be an innovative approach in the market

because of diversity. This is why, Obje Education will create its own market that competitors

will try to come this market. It means that Obje Education is not going to put their shoulder to

the wheel (Kotler, 2005, p. 587.).

7. Management

The main management team consists of Mr. Omer Erkam Karatsanli, General Director;

Mr. Yusuf Sahin, Marketing Director; Mr. Osman Safa Bursali, Education Director; Mr.

Yasar Sahin, Staff Director; and Mr. Osman Engin Gursoy, Financial Director.

Mr. Omer Erkam Karatsanli, General Director and Owner. The General Director is

selected by the board of directors from shareholders. Responsible for general

administration :

Decisions of the board and carry out tasks given by the board.

Oversee weekly operations, special affairs, and project planning, working intimately

with each program coordinator.

Together with the Financial Director, develop and control the annual budget for

board consent including necessary improvements.

Mr. Osman Safa Bursali, Education Director. The Education Director is hired by the

General Director. Liabilities include, but are not limited to:

Carry out tasks assigned by general director.

Education Personnel management.

Supervision of Education staff.

Develop and implement education program.

Coordinate students.

Mr. Yusuf Sahin, Marketing Director. The Marketing Director is hired by the General

Director. Liabilities include, but are not limited to:


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Carry out tasks assigned by General Director.

Management of all marketing activities

Develop network of partner agency within the education community.

Website maintenance.

Measure effectiveness of marketing activities.

Mr. Yasar Sahin, Staff Director. The Staff Director is hired by the General Director.

Liabilities include, but are not limited to:

Carry out tasks assigned by General Director.

Serve as liaison between staff and General Director.

Staff Personnel management.

Inventory management of education and office supplies.

Development of administration standards and procedures related to general staff

development.

Coordinate work on annual audits.

Mr. Osman Engin Gursoy, Financial Director. The Financial Director is hired by the

General Director. Liabilities include, but are not limited to:

Manage network finances and reporting, including Obje Education Houses.

Oversee the arrangement of the annual report of activities as well as financial reports.

Together with the General Director, develop and control the annual budget for board

consent including necessary improvements

Coordinate with the General Director, management of grants, special projects, and

financial management.

8. Organizational Structure

Our main team includes five directors, three assistants for each director, fifty teachers,

five secretaries, ten representatives of a foreign country, five transport staff, two cleaningstaff, and two security staff. Staff positions are changing, full-time and part-time. We

currently have 79 persons serving in our company.

8.1. Personnel Plan

Assistants of directors: These people are responsible to help directors for about all

matters. They are team of director (Full-time position for all employees, approximately 140

hours each per month.).


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Teachers: All Teachers must have experience working with student through. Teachers

will stay in education homes and give tuitions to students (Full-time position for all

employees at 150 hours each per month.).

Representatives of a foreign country: These people are responsible for the connection

of foreign countries (Part-time position for all employees, 60 hours each per month.).

Secretaries: These people are in charge of responsible from secretaryship and

registration of student (Full-time position for all employees, 200 hours each per month.).

Transport staff: These people are responsible from transporting student from airports to

homes, as well as foods to homes (Part-time position for all employees, 60 hours each per

month.).

The personal salary plan tables of Obje Education can be seen in Appendix 1.

9. Technology

Our company will use the highest technology in its own category. Obje Education

Companys homes are smart homes (http://www.smarthomesystems.com, 2008). All Obje

houses have a main computer in the living room, and the fastest internet connection with

wireless system. Additionally, there is a Dolby True HD home cinema system to watch

weekly films in our homes. We will provide a comfort life to our customers; furthermore we

will also save a lot of time for students as well as natural resources (electricity, water, natural

gas etc.), and labour. Thus, it is clear that this is a money saving and energy saving attempt.

Obje Education Company will use its own CRM Software and Financial Accounting

Software, which are created by Bisar Information Technology Corporation

(http://www.bisar.com.tr, 2011). That is, we can observe payments, personal development of

our students, and our business progress with the high technology.

Moreover, we have a website that is interactive for our customers. The customers of

Obje Education Company can visit the website not only for registration but also subsequently

to make their payments, as well as to monitor their performance.
http://www.smarthomesystems.com/http://www.bisar.com.tr/http://www.bisar.com.tr/http://www.smarthomesystems.com/


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10.Financial Plan

The following subtopics present our financial plan (for first and second years with fifty

homes, third year with sixty homes). (Barrow, 2008, p. 259.).

10.1. Break-even Analysis

The following table and chart summarize our break-even analysis.

The break - even analysis graph of Obje Education Company can be seen in Appendix 1.

Break-even AnalysisMonthly Units Break-even 28Monthly Revenue Break-even 280,000AssumptionsAverage Per-Unit RevenueAverage Per-Unit Variable Cost 10,0001,200Estimated Monthly Fixed Cost 134,40010.2. Projected Profit and Loss

The projected profit and loss statement is one financial document which shows thequantity of profit or loss you forecast your business to create in future periods. It will be a

beneficial tracking tool for neutrally determining whether your company is likely to make a

profit and continue or generate losses and finally fail (Pike, 2006, p. 48.).

The projected Profit and Loss for Obje Education Company is showed in the

accompanying table. The three yearly pro forma profit and loss tables of Obje Education

Company can be seen in the appendix 2.

The profit monthly graph of Obje Education Company can be seen in Appendix 3.

The profit yearly graph of Obje Education Company can be seen in Appendix 4.

10.3. Projected Cash Flow

The cash flow is revenue or expense stream that changes a cash account over a certain

period. Cash inflows generally arise from one of three activities (operations, financing or

investing) although this is also consisting as a result of contribution or gifts in the condition

of personal finance.


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Cash outflows consist from investments or expenses. This holds true for both personal

and business finance. Measurement of cash flow can be used for calculating other parameters

that give information on a company's value and situation (Borrow, 2008, p. 220.).

The three yearly pro forma cash flow tables of Obje Education Company can be seen

in the appendix 7.

The cash flow projection illustrates that provisions for continuing expenses are

adequate to meet needs of Obje Education Company as the business generates cash flow

adequate to support operations.

The cash flow monthly graph of Obje Education Company can be seen in Appendix 6.

10.4. Balance Sheet

Balance sheet is a financial statement that shows a company's liabilities, assets and

shareholders' equity at a certain point in time. A balance sheet is generally showed as a

"snapshot of a company's financial situation. (http://www.investopedia.com, 2011)

These three balance sheet sections give a useful idea to investors about company's

receivables and payables. Additionally, investors can see the amount of Paid-in Capital by

paid the shareholders.

The three yearly pro forma balance sheet tables of Obje Education Company can be seen inthe appendix 8.
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11.Appendices

Appendix 1

Personnel PlanYear 1 Year 2 Year 3

Directors 240,000 240,000 252,000Teachers 1,200,000 1,200,000 1,260,000Assistants 270,000 270,000 286,200SecretariesRepresentatives 75,000120,000 78,750120,000 82,687126,000Transport Staff 54,000 56,700 59,535Cleaning StaffSecurity Staff 19,20036,000 20,16037,800 21,26839,690Total People 79 79 79Total Payroll 2,014,200 2,023,410 2,127,380

Appendix 2


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Appendix 3

Pro Forma Profit and LossYear 1

Year 2

Year 3

Sales 6,000,000 6,000,000 7,200,000Direct Cost of Sales 1,680,000 1,680,000 2,016,000Other 0 0 0Total Cost Of Sales 1,680,000 1,680,000 2,016,000Gross MarginGross Margin % 4,320,00072.00% 4,320,00072.00% 5,184,00072.00%ExpensesPayrollSales and Marketing and Other Exp.DepreciationUtilities

Payroll TaxesOther

2,014,200400,00050,000

180,800

302,1300

2,023,410400,00060,000

185,200

303,5110

2,307,380200,00080,000

226,330

346,1070

Total Operating Expenses 2,947,130 2,972,121 3,159,817Profit Before Interest and Taxes 1,372,870 1,347,879 2,024,183EBITDA 1,422,870 1,407,879 2,104,183Interest ExpenseTaxes Incurred 0274,574 0269,575 0404,837Net Profit 1,098,296 1,078,304 1,619,346Net Profit /Sales 18.30% 17,97% 22.49%

Appendix 4


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Appendix 7

Appendix 8

Pro Forma Balance SheetYear 1 Year 2 Year 3

Assets

Current Assets

CashAccounts ReceivableOther Current Assets

1,548,29600

2,659,60000

4,358,94600

Total Current Assets 1,548,296 2,659,600 4,358,946Long-term AssetsLong-term AssetsAccumulated Depreciation

250,00050,000

250,000110,000

300,000190,000

Total Long-term Assets 200,000 140,000 110,000Total Assets 1,748,296 2,799,600 4,368,946Liabilities and Capital Year 1 Year 2 Year 3Current LiabilitiesAccounts Payable

Current BorrowingOther Current Liabilities

120,500

00

125,800

00

143,380

00

Subtotal Current Liabilities 120,500 125,800 143,380Long-term Liabilities 150,000 150,500 170,000Total Liabilities 270,500 276,300 313,380Paid-in CapitalRetained Earnings.Earnings

500,00050,000

1,098,296500,000

1,148,2961,078,304

500,0002,226,6001,619,346

Total Capital 1,918,796 2,726,600 4,345,946Total Liabilities and Capital 1,148,296 3,002,900 4,659,326Net Worth 1,918,796 2,726,600 4,345,946


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2011)

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European Ed. England: Pearson Education Limited

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