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Contents 1 Business idea or concept .............................................................................................................4

2 Elements of this promissing business idea: ................................................................................4

3. Social missions ...........................................................................................................................5

4. Estimated social impacts ............................................................................................................5

II. MARKET ANALYSIS ..............................................................................................................6

1. Business Environment Analysis ...............................................................................................6

2. Industry Description and Outlook ...........................................................................................6

2.1 Agritourism industry ...............................................................................................................6

2.2 Tourism for children................................................................................................................6

3. Target Markets ........................................................................................................................7

3.1 Target customers .....................................................................................................................7

3.2 Market demands ......................................................................................................................7

3.3 Target market size ...................................................................................................................8

4. Competition .............................................................................................................................8

4.1. Identification ...........................................................................................................................8

III. BUSINESS PLAN .................................................................................................................. 10

1. Project description: .................................................................................................................. 10

2. Business model, organization and management team ............................................................... 13

2.1 Organization and management team ...................................................................................... 13

2.2 Business model ....................................................................................................................... 15

3. Marketing strategy ................................................................................................................... 15

3.1 Operating motto .................................................................................................................... 15

3.2 Marketing objectives ............................................................................................................. 15

3.3 Development orientation ........................................................................................................ 16

3.4 Corporating strategy ............................................................................................................. 17

3.5 Marketing mix ....................................................................................................................... 17

3.5.1 Products/ Services ..................................................................................................... 17

3.5.2 Place ......................................................................................................................... 19

3.5.3 Price ......................................................................................................................... 20

3.5.4 Promotion ................................................................................................................. 20

4 Financial plan ........................................................................................................................ 22

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4.1 Important assumptions .......................................................................................................... 22

4.2 Projected profit and loss ........................................................................................................ 22

5 Social and Environmental Impact Assessment ....................................................................... 22

5.1 Social missions ....................................................................................................................... 23

5.2 Definition of Social Value Proposition ................................................................................... 24

5.3 Monetized Social Values ........................................................................................................ 24

APPENDIX .................................................................................................................................. 27

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I. EXECUTIVE SUMMARY

1 Business idea or concept

“GREENIE supplies agriculture tourism for children at the age of 6 to 14 – into which we

integrate educational programs of agricultural culture, awareness of environmental protection

and soft skills to live and work independently.”

2 Elements of this promissing business idea:

2.1 Clear Target customers value: For a complete development of children

Greenie target customers: children from 6 – 15 years old

GREENIE’s business idea desires to bring children with comprehensive and interesting

educational programs on nature, environment and especially necessary life skills

If Vietnam’s education is highly verbal, rapidly systematic, and dominated by classical

languages, GREENIE’s concern for forming character, led to pioneering insights in early

childhood education.

2.2 Market of adequate size :

In the phase of 5 first years, GREENIE implements the project for children in Ha Noi’s

private elementary and secondary schools which have the tuition rate at 150$/ month or more.

The students in these schools are estimated to be over 8000 (Source: Greenie’s analysis in

Hanoi primary and secondary schools). The market size is reported to increase over years

In the phase of later years, the subject is still children, but GREENIE expand the

exploring scope to the whole children at the age of 6 to 14 in Ha Noi and several neighboring

cities. When the ecomomy and the awareness of people reach a higher level of development,

GREENIE will expand our concern to the segmentation of younger children.

2.3 Competitive advantages - Sufficient degree innovation

The combination of tourism and education

Concentration on a niche market: Only focusing on children at the age of 6 to 14,

GREENIE provides the best service to meet the real demand of a narrow market, or a new

niche of the existing tourism - education service market.

Standard and high quality service: The advantage of GREENIE is a model of vanguard

standard and safety tourism – education service. At the soonest, GREENIE focus on finishing

high quality services, taking opportunities to exist and position our trademark in the target

market.

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2.4 Barriers to entry

High investment cost

Long time of business setup

Customer inertia

2.5 Feasibility and profitability:

The company is run by one managing director and 6 functional managers with education

background and experience clearly shown in their resumes.

Unit: USD

owner's equity investment 89,500

capital mobilized from other sources 50,000

3. Social missions

Greenie services are longing to bring great social benefits to community, society,

environment, Vietnamese culture and executive people. Greenie provides a happy working

ambiance, which is non-permanent, creative, entrain the progression, and thus help the young

people to realize their wishes to develop the country.

4. Estimated social impacts

GREENIE firmly believes that our service has innate social and environmental benefits,

therefore every sales leads to an incremental change that essentially beneficial for society and

environment. Thus, in this SIA (Social Impact Assessment), we use number of children served

per fiscal year or revenue from serving children and increased income of GREENIE’s local

employees and farmers as our social indicators. Taken together for the period of 10 years, the

resulting SNPV is USD 626702 and the SROI is 1.27 for each dollar invested in Greenie.

-50000

0

50000

100000

150000

1 2 3 4 5

Projected profit in the first five years

Profit before tax

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II. MARKET ANALYSIS

1. Business Environment Analysis

Vietnamese economy’s increasingly stronger orientation to the service sector and the

considerable improvement in people’s living standards have resulted in the significantly

growing demand for high quality services. Moreover, agriculture and rural development,

tourism, environment protection, cultural heritage crucial preservation and education – the

fields that Greenie implemented on, have received considerable advocate from the

government through various polices and programs. These factors are definitely generous

support for Greenie’s success.

2. Industry Description and Outlook

2.1 Agritourism industry

Tourism has reported a fast growth attributed to advantages in nature and government’s

policies. However, Vietnam’s tourism has few services to tourists. Vietnam tourism

enterprises are still exploiting the available services, while many other potential sources

remain untapped. Among those is agriculture in which nearly 70% of Vietnamese are working

in. While there are enormous resources for the development of agritourism in Vietnam, it has

been new and exploited far under its full potential., especially in the North of the country.

2.2 Tourism for children

The trend of favoring children’s education and entertainment has become popular in quite a

few Vietnamese families. Vietnam's tourism industry, however, is virtually lacking tourism

for children. In fact, there is a small number of tourism firms in Hochiminh City

implementing this kind of business under the way of summer camps and there is almost no

specialized tours for children conducting by professional firms in Hanoi.

The increasing of consumption, needs of enjoyment and the social tendency of care for the

sake of children as well as increasing trend of favoring environmentally friendly products and

services are driving forces for the future of the industry. Thus, agritourism for children, the

combination between agritourism and life-skills education for children, is a really promising

industry that has not been exploited effectively.

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3. Target Markets

3.1 Target customers

In the first 5 years, we initially lunch the business in the location of Hanoi and aim at students

from 26 elite primary and secondary schools whose tuition fees of 150 USD per month or

more in Hanoi. These schools are reported as high quality schools with most students from

high-income and above-medium income family. Parents of the students are usually opend-

minded, progressive and much concerned for their children’s comprehensive development.

Moreover, these schools have quite modern management and operation system, possessing

much more autonomy than public schools. More importantly, their curriculums are

comprehensive, regarding skills education as an important part and extra-curricular activities

also gain due attention. The schools are implementing customer-focused strategies, thus, the

voice of parents and students is definitely pivotal to them.

3.2 Market demands

Through market research, we have found that the demand of tourism and life-skills education

programs for children in Hanoi is very large. Many parents are willing to spend huge money

on their children’s overseas summer camps due to the lack of domestic similar programs.

According to our survey on 420 parents of children from those 26 target schools, the majority

of parents (90%) are aware of the importance of environment knowledge and life-skills

education. They are willing to let the kids joining this kind of programs. Data also shows that

agritourism gain significant support (88%), although it has not still widely known by

considerable number of people. Thus, promotion strategies for agriourism is obviously

necessary. 60% of respondents express their dissatisfaction with existing tourism and life-

skills education services for children.

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3.3 Target market size

Table 2: Market size estimates for Greenie

4. Competition

4.1. Identification

There currently exists no dominant agricultural tourism company. GREENIE identifies two

main competitors as follows:

Bavi Homestead, Company Limited ATC, Van Hoa - Ba Vi - Ha Noi,

www.bavihomestead.com. The farm operates in agriculture tourism, supplying farm

production and tourism service. They have a wide range of customers from local tourists to

foreigners at all ages.

Training Center of the Organization of international healthy lifestyle (IOGT) in Soc Son -

Ha Noi is a center for training skills such as teamwork, TEAMBUILDING, positive thinking

... Customers are mainly high school and college, employees of companies in Hanoi.

Our two main competitors are ccompanies who have strong capital power and experience, but

we differentiate our service by the market segmentation (children aged 6-15). The

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concentration on children, and the combination of agritourism and life- skills training

programs are certainly our competitive edges.

Competitors Strength Weekness

Bavi Homestead - Having strong capital power

-The farm’s owner is

environmental researcher,

having good knowledge of

agritourism and wide business

network.

- Operating time is 3 years

-Lack of qualified staff.

- Branch name is not wide-

known, lack of professional

marketing strategies

-Having no specialized

service for children.

IOGT Vietnam -High quality service

-Staff are foreigners and

Vietnamese experts.

-Well-known branch

-Having a wide network with

NGOs, media

-Having no agritourism and

other entertainment

programs..

-Having no specialized

service for children

-High price

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III. BUSINESS PLAN

1. Project description:

1.1. Value proposition: Edutainment

GREENIE is proud to bring our customers such GREENIE-style services

Our services have special features as following:

Combination of education and tourism

A modern method of educating children “ see-do- be aware- act”

Effort to help customer benefit most from our trip. GREENIE provides variously

customer-oriented tours.

1.2. Location:

Via survey and market research, we decided to choose Ba Vi as the destination of our tours.

GREENIE farm is built near Flower farms, cattle farms and botanical gardens. More

precisely, GREENIE farm is located in Van Hoa, Ba Vi district. GREENIE farm is 3 km away

from Cattle and Flower Farm, 5 km away from Perfume Fall, 12 km away from Ba Vi

national Garden, 10km away from Herbal Garden and 15km away from Suoi Hai Lake. It can

be said that the site of GREENIE Farm is considerably convenient for tourism. It is

surrounded by major tourism destinations of Ba Vi, Hatay. It is remarkably convenient for

tourists to have visit trips to various farms in short time.

Some points about Ba Vi:

Ba Vi locates in the North West of Hanoi, which is 50km away from Hanoi centre. Diverse

nature is the outstanding advantage of Ba Vi

Strengths of location

Ba Vi is the tourism centre of old Ha tay (now Ha Noi).

Ba Vi is placed near Ha noi, which is appropriate for short tours. With regard to children,

short – distance and day tours enable parents and teachers to better keep track and take care of

children.

The traffic to Ba Vi is convenient. Coming to Ba Vi, tourists travel through Lang – Hoa

Lac highway, which is very modern and easy to go.

Weaknesses:

Competition among tourism companies in Ba Vi is intense

Tourism resorts, farms and service are scattered, lack of corporation

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Environmental protection is an alarming matter because there are many tourism

companies exploiting the place.

1.3 Introduction about GREENIE Farm

Located in 3 hectare piece of land, GREENIE Farm is equipped with all necessary facilities to

bring urban children unforgetable and highly-educated outdoor trips.

With a view to fully satisfying customers, GREENIE Farm is well-designed with many

different zones like: Animal Kingdom, Botanical Garden ( included both vegetables and

orchards), Eco swimming pool, entertainment zone, common Hall, Parking lot…

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1.4 Description of GREENIE’s services/products

1.4.1 Main services of GREENIE

Environmentally educational activities (planting and caring for trees, picking up

vegetables to prepare daily meals or taking after animals)

Agriculture-educational tourism (tours to tea hills, corn fields, paddy-fields, herb

gardens; Vietnamese folk games, etc.)

Life – skill educational activities (teamwork games like: cooking, gardening, etc.; visits

to Ba Vi orphanage )

Greenie chooses first aid courses as a unique feature of our life skill education besides

teamwork or other life skills. This is the unique point of Greenie’s service compared to

current tourism suppliers.

First aid skills helps children sustain life and prevent or minimize further suffering and

disability.

First aid courses are well-designed and are well-categorized so that they are suitable for every

children from 6-14. We teach kids how to become master of the situation in case of burns,

bleeding, allergic reaction, poisoning, bone injury, etc.

Greenie specially offers reasonable and favorable discount for schools or organizations which

are interested in those courses.

1.4.2 Supplementary services/products of GREENIE

Home gifts with GREENIE vegetables and fruits

Souvenir stores, Greenie superman clothes and local products stall

Grow-your-tree service

Other entertainment activities like camping fire, dancing, playing football, watching

films, reading books or swimming…

Volunteering activites

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2. Business model, organization and management team

2.1 Organization and management team

Organization

Company Ownership

Greenie is a Liability Limited company incorporated at the Registrar of Companies through

the foresight and vision of the founders. It is 100% owned by Ms. Vuong Thuy Huong, Ms.

Dinh Thi Thuy Hang, Ms. Nguyen Phan Thuy, Ms. Luc Thuy Duong, Ms. Tran Hong Lam.

Management team

Greenie will be run the founders: Ms. Cu Thi Thanh Hai, Ms. Nguyen Thi Thanh Hoa, Ms.

Vuong Thuy Huong, Ms. Dinh Thi Thuy Hang, Ms. Nguyen Phan Thuy, Ms. Luc Thuy

Duong, Ms. Tran Hong Lam.

Greenie’s Managing Director is Ms. Cu Thi Thanh Hai – an experienced entrepreneur and

lawyer.

Greenie’s key personnels include:

Ms. Cu Thi Thanh Hai – managing director of Greenie:

Ms Hai has more than 15 years working in business and legal sector. Ms Hai has played

important roles in various companies. She has been Human Assistant and Training Expert of

Ford Vietnam. Prior to be Human Resouce Manager of Newsplus Joint Stock Company, Ms.

Hai worked as the manager in GK Corporation, BizConsult lawyer office and IndochinaPro

Managing Director

Deputy Director

FinanceHuman

Resource

Deputy Director

Research and Development

Marketing and Sales

Products and Service

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Joint Stock Company. Experience in management and profound knowledge in law are firm

foundation of Ms Hai to take the role of Managing Director of Greenie.

Ms. Nguyen Thi Thanh Hoa – Deputy Director – takes charge of Research and

Development Department, Marketing and Sales Department, Products and Service

Department.

Ms. Hoa has Master Degree in Ethnology, University of Social Sciences and Humanities, Ha

Noi National University, 2007. She has profound experience in issues related to education

and culture. Prior to Greenie, Ms Hoa is a researcher at the Division of Cultural Policy and

Development Studies, Vietnam Institute of Culture and Arts Studies (VICAS). Ms. Hoa has

participated in various cultural and educational projects including: Program of preservation

and promotion intangible cultural heritages” funded by Ministry of Culture, Sports and

Tourism, Cultural activities and products in market economy in Vietnam at present, national

project, funded by Ministry of Culture, Sports and Tourism… With a deep knowledge about

culture and education, Ms. Hoa is promising to integrate into Greenie’s service and products

weighty cultural and educational features.

Ms. Hoang Hong Tra – Deputy Director – taking charge of Finance and Human

Resource Department

Graduated from Foreign Trade University and have experience in working in many clubs and

organizations, Ms. Hoang Hong Tra will be in responsible for internal issues of Greenie

including Finance Department and Human Resource Department. With a background of being

the leader of organization department of Human Resource Club in Foreign Trade University

and Bachelor in the faculty of Finance and Banking of Foreign Trade University, Ms. Lam

will be the right person for the position of the second Deputy Director.

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2.2 Business model

3. Marketing strategy

3.1 Operating motto

GREENIE compromises to bring along a unique service named edutainment which comprises

of agri-tourism and comprehensive education for children

3.2 Marketing objectives

Agri-tourism for children is the first tourism service in Vietnam aiming directly at children.

With a hope to provide Vietnamese children a new look on the countryside and social

knowledge about environment, society, the model will be applied in the whole country. Being

aware of being the pioneer in this sector, GREENIE’s marketing strategies include:

Advertising about GREENIE’s agri-tourism for children to target customers and

decision-makers

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Positioning GREENIE in the market

Attracting classes in the society, enhancing the social and educational value of the service

Creating new trend in people’s concept about education and tourism

Creating a new look on Vietnam’s countryside

3.3 Development orientation

3.3.1 Short term orientation (2010 – 2015)

In the first 5 years, GREENIE sets its objectives as following:

Plan: Start agri – tourism for children in Ba Vi, Hanoi. During this period, GREENIE focuses

on building farm and completing service into operation

Objectives:

Advertising about GREENIE’s agri-tourism for children to target customers and

decision-makers

Positioning GREENIE in the market

Market researching to extend the scope

Evaluating customers’ opinion and potential customers to enhance the service quality

3.3.2 Mid – term orientation (2015 – 2017)

Plan: Open 2 other GREENIE farms in 2 provinces: Hoa Binh and Phu Tho – these provinces

are also famous for beautiful landscapes and diverse plants. Launch 2 reality television shows

about environment, educationally national events. The television shows’ pattern will

hopefully attract other TV channels

Objectives:

Expand GREENIE’s scope and influence

Attract more customers. GREENIE’s customers will not only be children in high-class

schools but also in more common schools

Increase profit

3.3.3 Long – term orientation (from 2017)

Plan: set up and implement franchise strategy

After 7 years of operation, GREENIE has marked itself as a strong and stable tourism

company in the market. GREENIE intends to set up franchise strategy with brand, system and

service. In order to achieve the target, GREENIE continuously improve, standardize

managing system, operating procedures, service quality… and most importantly, creates and

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maintains core value. In GREENIE’s franchise strategy, GREENIE will become capital

contributor of the franchisee. The franchisees will have the right to expand the system, divide

by geographical borders. Franchisees can apply GREENIE’s models in every province except

for Phu Tho, Hoa Binh, Ha Noi.

Objectives:

Increase local farmers’ income via the new enrichment by their own farm.

Popularize agri-tourism together with education for children all over Vietnam

Make GREENIE among the top brands of edutainment in Vietnam

Create new trend of tourism: tourism and education

Attract international customers, advertise new look on Vietnam’s countryside and culture

3.4 Corporating strategy

Partners:

Corporation with organizations, groups related to tourism, education and environment.

This will enable GREENIE’s deeper and more quality participation into GREENIE’s

promising fields.

Corporation with local people and authorities

Long term and win-win relationship with GREENIE’s partners

Stable and continuous contact, information update with partners for supportive and up-to-

date corporative measures

Favorable policies for partners

Customers:

Close relationship with 26 targeted schools.

Tighten relationship with organizations for children

3.5 Marketing mix

3.5.1 Products/ Services

Packages

To make sure customer could get the most from our trip, we try to bring customers an

unforgettable tour full of exciting and meaningful activities.

Our tour in general :

06:45 a.m. Reporting Notice

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07:00a.m. Departure from Ha Noi to

Ba Vi

There are many warm-up

activities on the bus to stir up

the atmosphere among

children.

08:00 a.m. Breakfast at GREENIE During breakfast we will

introduce briefly about

GREENIE, GREENIE Farm,

GREENIE Products and

schedule of the trip.

08:30 a.m. - 09:30

a.m.

GREENIE tour- touring

the farm

09:30 a.m. - 10:30

a.m.

Depend on each tour

10: 30 a.m.- 13: 00

p.m.

Cooking and Lunchtime

13:00 p.m.- 14:30

p.m.

Tours to flower and cattle

farm

14: 30 p.m.- 16:00

p.m.

Depend on each tour

16:00 p.m- 17: 00

p.m.

Game

17:00- 19:00 Back to Ha noi

Angricultural education Tour

Speacial features:

Customer could choose one of two options belows:

“ Today I’m farmer”:

Children will have a chance to dig and sow seed, grow and water tree, pull out weed, milk the

cow, feed animals, pick vegetables and fruits. All activities are under instruction of GREENIE

staff to ensure the safety.

"GREENIE Farm Festival"

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This is a very special tour of GREENIE. It’s held only once a month and lasts for at least 2

days.

GREENIE Farm Festival imitates a serie of activities during angricultural festival. Children

will be encouraged to take part in all the preparation process for this event from decorating

their own team tent, making costumes to cooking foods for Big Feast. Besides they also

together practise for some plays, pantomime which are short but very funny. Children really

make their own party. Big Feast is cooked by children. They pick vegetables and fruits. They

milk the cow and make yoghurt.

Environmental education Tour

Speacial features:

Making recycled paper, making toys from natural materials: Laurel wreath, bird nest, card

from leaf. Using old toys or used plastic bottle

My Garden: Children will buy tree and have it grown in My Garden- a garden which is

spencially reserved for customer.

Besides there are a lot of interesting games like Tree guessing( See and pick the right

vegetables)

Life-skill education Tour

Special features:

Various and customer-oriented schedules

Contain of activities related to teamwork skills, independent work, critical thinking…

3.5.2 Place

Distribution strategy

Distributing via GREENIE’s headoffice in Hanoi centre: This would be the working

place of GREENIE staff to deal with partners and implement operation, marketing actitivities.

Distribution channel via the Internet:

The website would increase the effectiveness in direct distribution. It also makes it convenient

for customers to order tours, especially regular Internet users such as organization, foreign,

student customers. GREENIE’s website is designed eye-catching, friendly to users and

equipped broad band, which allow users to view the web at high speed without interruption in

rush hour. The information is plentiful in different sectors. Customers can order tours online

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and refer to useful information about education for children, environmental knowledge and

other helpful information in the company’s website.

3.5.3 Price

Pricing strategy of GREENIE is based on 3 criteira:

Pricing strategy is based on the family’s consumption for education and entertainment for

children:

Education: Target customers of GREENIE are children in high quality school and

international schools in Hanoi. Expenditure on education for students in A schools in Hanoi

ranges from $160 to $700. Besides, these families also spend about $70 - $168 for their

offsprings to study in skill training centres and cultural houses in extra hours.

Entertainment: Average monthly cost for entertainment of children in these schools is: $

17 – $ 68

GREENIE’s pricing strategy is suitable to GREENIE’s service:

GREENIE ensures to provide customers with professional, safe service, assert GREENIE’s

brandname as the top and pioneer tourism company in this sector.

GREENIE offer the same price with competitor but better quality service

We also base on the current pricing policy that similar tourism service in the market offers.

The pricing policy GREENIE offers is as following:

Price: $10 - $23/person/day ( the price varies according to different tours)

Discount and commission:

Discount 10% for schools, organizations and companies who regularly order GREENIE tours

As soon as the tourism has marked itself as a strong company in the market, GREENIE will

apply more discount and promotion campaigns to expand the market size. In the future,

GREENIE will enlarge the market segments, and provide more services to more children with

reasonable price.

3.5.4 Promotion

Objective: target customer (children) and decision-makers (parents, schools, organization…)

Strategy: advertise and PR continuously, effectively in every media channels. Among those,

GREENIE pays special attention to cost-saving and highly effective advertisements, which

can approach large amounts of marketing objectives. As a newly founded tourism company,

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GREENIE exploits traditional media channels: leaflets, maps, website, mailing lists, contacts

with potential customers and authorities, corporation with partners, event organization…

Promotion campaign is implemented as following:

Advertisement:

Greenie utilizes various advertisement tools such as: advertising through websites with

intensive flows of audience ( For example: tourism websites, websites for parents:

www.webtretho.com, www.mevabe.com, www.chametainang.net...). We also advertise via

partners by having Greenie posters in Greenie partners’ office and other media channels of

Greenie partners. Besides, Greenie uses internal marketing via using Greenie image in

Greenie uniform, gifts, tools and stuff during tours. Especially, we foster advertise via

Greenie’s website

Those above advertisement tools will be implemented daily to enhance the brand recognition

via internal advertisement and partners’ corporation.

PR

PR is among the most focused marketing channel of Greenie marketing campaign. We have

press release to newspapers and television stations on the occasion of Greenie’s events.

Articles about Greenie and agri-tourism will also be published in bilingual tourism newspaper,

social newspapers, forums about family, tourism… We also participate in TV shows about

education, tourism and environment. Target audience of PR strategy are target customers and

decision-makers, domestic and abroad potential customers.

Event organization

The objective of Greenie’s event organization is to promote Greenie’s reputation among

schools, students and parents. Greenie applies diverse kinds of organization such as co-

operating holding events, launching environmental contests for children, and organizing skill

courses, summer camps for children…

Partner Corporation

Greenie holds “Golden Partners” as an semi annual event for expressing our thankfulness to

partners during the year. “Golden Partners” is held 2 times per year: from January to April and

from June to September. “Gold partners” are the partners who have total customers to

GREENIE in 3 continuous months exceeding 400 customers. Gold partners will be received

gifts and priorities

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4 Financial plan

4.1 Important assumptions

The financial plan depends on important assumptions. From the beginning, we recognize that

payment terms are critical, but not a factor we can influence easily. At least we are planning

on the problem, and dealing with it. Interest rates, tax rates, and personnel burden are based

on conservative assumptions.

Some of the more important underlying assumptions are:

A strong economy, without major recession.

That there are no unforeseen changes in economic policy to make our service

immediately obsolete or unwanted.

In the summer, the number of tourist increases, because the students are free from school

Equal depreciation for each year

Interest rate is 9% per year

The cost per tour includes: cost of 2- way-bus, 2 main meal, breakfast, sub-meal, tour

guide, insurance, activities expenditure and others

Hire seasonal employees in months that have high quantity of tourists

Material facilities are built in 3 months

4.2 Projected profit and loss

The financial reports reveal positive trend in the development of Greenie. After the loss in the

first operational year, the following years report profits in Greenie’s financial income

statement.

In the first year: we lose:$ -2585.705 while the following years witness a rapid increase in the

profit ( year 5:nearly $125932)

Moreover, we also have positive signal in operating ratios:

Here are some business ratios that show the successful ability of the project. IRR is more than

the discount rate, NPV of the project is $ 61053.95– a positive number. We also have the

positive ROI and ROE.

R 0.09

NPV 61053.95

IRR 19%

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ROE 0.40929227

ROI 0.262592531

The Break even point of our project is at the rate of 16096 tourists, and we can recover the

initial investment after nearly 4.5 years

5 Social and Environmental Impact Assessment

5.1 Social missions

For community and environment

Creating an environment, playing grounds for children in order to educate them well, in

which peer friends will correct negative behavior in the spirit of open friendship, carefully

prepare them for the future.

Forming a standard farm model with breeding areas as well as small developed

cultivating areas while ensuring its both quality and hygiene. Constructing a standard hygienic

model which is durable. This can enlighten the households at its place.

Creating jobs for local residents, help them get more income by supplying support

services. Improve farmers’ living standard in focusing spots of development.

Two - thirds of the total profit will be re-invested to continue developing the services,

therefore to develop the society.

Educating the children the basic knowledge of the environment surrounding, yield help

them to admire the beauty of the nature, and show them how to economize water, electricity,

how to protect the environment.

For Vietnamese culture

The program “Education of agricultural culture” will teach urban children about the

countryside, also teach them to be grateful and to love the farmers. That is the foundation of

the urban-countryside firm relationship.

Preserving and stimulating traditional culture values through folk games, competions

intimating festivals like planting festival, havesting festival,…

For the executing people

Providing a happy working ambiance, which is non-permanent, creative, entrain the

progression, and thus help the young people to realize their wishes to develop the country.

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By providing high quality services, GREENIE will make good profit, also for its

shareholders.

5.2 Definition of Social Value Proposition

Basing on various widely accepted studies as well as conventional standards and development

trends of society, GREENIE believes that our service has innate social and environmental

benefits, therefore every sales leads to an incremental change that essentially beneficial for

society and environment. In reality, we will conduct surverys to know whether our customers

find the programs useful for them after every tour. By this way, we not only modify our

services to better match cusomers’ expectations but also measure the benefits they gain

through our activities. To be more conservative, for this SIA, we estimate the percentage of

customers who consider Greenie’s services beneficial for them is 75%.

We define our social indicators as:

Number of children served per fiscal year

Increased income of GREENIE’s local employees and farmers who supply products and

services for us

We define our social indicators as:

5.3 Monetized Social Values

The value of customers’ benefits:

25 |

Basing on various widely accepted studies as well as conventional standards and development

trends of society, GREENIE believes that our services has innate social and environmental

benefits, therefore every sales leads to an incremental change that essentially beneficial for

society and environment. In reality, we will conduct surverys to know whether our customers

find the programs useful for them after every tour. By this way, we not only modify our

services to better match cusomers’ expectations but also measure the benefits they gain

through our activities. To be more conservative, for this SIA, we estimate the percentage of

customers who consider Greenie’s services beneficial for them is 80%. On the other words,

every sales of Greenie’s service consistently delivers 0.8 unit of value for the society. We

measure this value through the number of customers and the willingness of paying for our

service or the annual value generated by Greenie service itself is the revenue coming from

children serving per fiscal year.

The value of increased income

For local employees: Ba Vi is considered a rich potential tourism area, however, living

standard of people, especially farmers and ethnic minority people, remains comparatively low

with average annual income around USD 333 ( Source: http://www.hanoi.gov.vn – Hanoi

People Committee’s Web site) and moderately high unemployment and underemployment

rates . The similar situation is in Phu Tho and Hoa Binh provinces. Greenie will provide

training and employment for around 720 low-skilled local people in 10 years. Moreover,

Greenie commits to offer these employees with higher level of annual income - about USD

1600, more than 250% (USD 667) higher than before.

For local farmers: Greenie has a close and long-term partnership with local farmers in

agritourism field and food supplying. Our activities are going to take place both inside

Greenie farms and in local farms. It is estimated that local farmers will earn USD 1 from each

of our customers.

The higher income that Greenie bring to local people will definitely improve the quality of life

for their families, give them opportunities of self-empowering as well as reduce poverty for

the overall community and support rural development.

26 |

Taken together for the period of 10 years, the resulting SNPV is 812698 USD and the SROI is

1.27 for each dollar invested in Greenie.

27 |

APPENDIX

APPENDIX 1: Projected yearly income statement for 5 years (USD)

Year 1 Year 2 Year 3 Year 4 Year 5

Revenue

Revenue 195830 244787.5 318223.75 429602.0625 579962.7844

Discount 19583 24478.75 31822.375 42960.20625 57996.27844

Net revenue 176247 220308.75 286401.375 386641.8563 521966.5059

Total Cost

Advertising cost 9200 7000 7000 6000 5000

Interest 4500 4500 4500 4500 4500

Cost per tour 121825 146190.0 182737.5 237558.75 308826.375

Salary 22045 25351.75 30422.10 36506.52 43807.824

Land rent 2778 3055.8 3361.38 3697.518 4067.2698

Office rent 4668 5134.8 5648.28 6213.108 6834.4188

Repair and

maintenance

cost

880 968 1064.8 1384.24 1661.088

Telephone.

electricity …

cost

3960 4356 5227.2 6272.64 7527.168

Depreciation 6576.705 7234.3755 7957.81305 8753.594355 9628.953791

Other cost 2400 2640 2904 3484.8 4181.76

Total cost 178832.705 206430.7255 250823.0731 314371.1704 396034.8574

Total cost/ total

revenue

0.913203825 0.843305829 0.788197214 0.731772954 0.682862535

Profit

Gross profit 74005 98597.5 135486.25 192043.3125 271136.4094

Gross profit /

total revenue

0.377904305 0.402788133 0.42575782 0.447026049 0.467506565

Gross profit /

Net revenue

0.419893672 0.44754237 0.473064244 0.49669561 0.519451739

Pre-tax revenue -2585.705 13878.0245 35578.30195 72270.6859 125931.6485

Corporate

income tax

0 3469.506125 8894.575488 18067.67147 31482.91214

Net profit -2585.705 10408.51838 26683.72646 54203.01442 94448.73641

Net profit

/revenue

-

0.013203825

0.042520629 0.08385209 0.126170284 0.162853098

Net profit / net

revenue

-

0.014670916

0.047245143 0.093168989 0.140189205 0.180947887

28 |

APPENDIX 2: Projected revenue and profit in the first five years

APPENDIX 3: Balance sheet

YR1 YR2 YR3 YR4 YR5

Current asset

Cash 20.991,00 22.392,89 25.916,54 39.409,11 64.225,44

Non-Current asset

Operational

equipment

122.500,00 134.750,00 148.225,00 163.047,50 179.352,25

Depreciation -$6.576,71 -7234,3755 -7957,81305 -

8753,594355

-

9628,953791

Total asset 136.914,30 149.908,52 166.183,73 193.703,01 233.948,74

Current liabilities 50.000,00 50.000,00 50.000,00 50.000,00 50.000,00

Shareholder’s

equity

89.500,00 89.500,00 89.500,00 89.500,00 89.500,00

Net profit -$2.585,71 10408,51838 26683,72646 54203,01442 94448,73641

Total 136.914,29 149.908,52 166.183,73 193.703,01 233.948,74

0

200000

400000

600000

1 2 3 4 5

Projected revenue

Total revenue

29 |

APPENDIX 4: Cash flow

YR1 YR2 YR3 YR4 YR5

Starting cash 139500 20991 19353,4 39864,515 97561,29525

Cash in

Revenue 176247 220308,75 286401,375 386641,8563 521966,5059

Total cash in 315747 241299,75 305754,775 426506,3713 619527,8012

Cash out

Advertising

cost

9.200,00 7000 7000 6000 5000

Interest 4500 4500 4500 4500 4500

Fixed asset

investment

2500 2750 3025 3327,5 3660,25

Salary 22045 25351,75 30422,1 36506,52 43807,824

Initial material

facilities

120000 20000 20000 20000 20000

Land rent 2.778,00 3055,8 3361,38 3697,518 4067,2698

Cost per tour 121825 146190 182737,5 237558,75 308826,375

Office rent in

Hanoi

4.668,00 5134,8 5648,28 6213,108 6834,4188

Telephone,

electricity …

cost

3.960,00 4356 5227,2 6272,64 7527,168

Repair and

maintenance

cost

880 968 1064,8 1384,24 1661,088

Other cost 2.400,00 2640 2904 3484,8 4181,76

Total cash out 294756 221946,35 265890,26 328945,076 410066,1536

Ending cash 20991 19353,4 39864,515 97561,29525 209461,6476

30 |

APPENDIX 5: Monthly profit

-5000

0

5000

Profit

Monthly profit in the first year

Month 1 Month 2 Month 3 Month 4 Month 5 Month 6

Month 7 Month 8 Month 9 Month 10 Month 11 Month 12

31 |

APPENDIX 5: Social impact assessment table