mba business plan

7/27/2019 MBA Business Plan

1/40


2/40


3/40

Enlighten Group Lumina

Executive Summary

Enlighten Group is a start-up company that will revolutionise the process of lighting design

through its innovative Lumina solution. Lumina is an end to end lighting solution that architects

can package and offer to high end residential or commercial customers who want a greater rolein designing the lighting of their space.

Currently, lighting design is completed by an architect or lighting designer and shown to the

client (end customer) on a computer-assisted 2D plan in which lighting is depicted by a series of

squares or circles. This is hard for a layman to visualise, and can be disastrous if the end

product does not meet the end customers vision, as once lighting has been installed it is

usually too late or too expensive to implement changes.

Remodel in progress Lumina 3D visualisation of completed lighting

Lumina consists of a software package, a hosting service and a web-based light fixtures retail

aggregator. The service enables architects to model lighting designs in 3D visuals, allowingend customers to approve or edit designs and purchase light fixtures through the web-based

aggregator at competitive prices.


4/40


5/40


6/40


7/40


8/40


9/40


10/40


11/40


6

Lighting Fixtures Aggregator

Once a lighting design has been finalised, the end customer will be able to call up fittings from

Luminas aggregator. For example, different spotlights may be scrolled through, allowing the

end customer to select and order at a discount directly through Lumina. As the Lumina brand

achieves greater consumer awareness and credibility - as well as a critical mass of retailpartners - Enlighten Group expects the aggregator to become the preferred shopping channel

forLumina end customers.

A typical user experience is outlined below:

1. Architect uses Lumina to produce 3D model from CAD dimensions

2. Architect designs proposed lighting scheme for given space

3. Architects proposed solution is posted on password-protected, customisable, website

hosted by Enlighten Group

4. End customer accesses lighting scheme designed for their residence/business

5. End customer signs off lighting scheme, makes adjustments or feeds back to architect

changes the client wishes to see

6. End customer and architect meet to discuss final lighting design, with Lumina as a visual

tool to facilitate conversation

7. End customer has the option of buying fixtures direct from Lumina website

2.2 Advantages

Luminas USP is that it is a unique end to end service that provides a number of benefits for the

architect and for the architects client, the end customer. These are:

Architects

1 Eliminates the need to hire lighting designer

2 Enables 3D visualisation with limited time expenditure

3 Quicker client sign-off

4 Can be used to differentiate service offering

5 Provides opportunity for innovation

6 Provides additional revenue stream hosting fee will be marked-up

7 Easy calculation of energy consumption to meet new UK Building Regulations


12/40


7

End Customers

1 Provides visualisation of end result and thus ensures right first time lighting solutions

2 Enables interaction with the software and allows them to take as much control of the

lighting design process as they desire

3 Saves cost of hiring lighting designer4 Saves money through ensuring energy efficient lighting

5 Reduces billable architect time and thus saves money

6 Saves money by purchasing discounted light fixtures through Lumina aggregator

2.3 Product Development Timeline

2006 2007

May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

Preparation RecruitITDirector

FinaliseinitialSpecification

Contractdevelopers

Development Developmentcommences

UserInput

PrepareBetaVersion

Beta testing- Internaland usertrial

SupportAct iv ity

PreparatoryPR work

Launch GoldVersion

1 Feb:launch

2.4 Future ProductsEnlighten Group will refine Lumina in step with advances in technology and computer

graphics/processing power. Enlighten Group will continually expand the number of lighting

fixtures and fittings available through Lumina and will develop a range of products for different

markets. Future products will include:

1 A solution tailored to exhibition & event planners

2 A basic online version for retailers

3 A solution tailored to managing agents of commercial property

4 An updated solution including heat efficiency calculations

5 A basic consumer version for DIY enthusiasts


13/40


14/40


9

Figure 3: Share of Total Architect Market by Sector

% Share 2005 % Growth 1995 - 05 % Growth 2004 - 05

Private Housing 43.1 +624 +12

Leisure 7.4 +349 -16

Offices 8.7 +106 +23

Retail 4.3 -65 -22

Industrial 5.4 +76 -7

Market Shares The Difference in Private Housing

Broadly speaking, the share of commissions received by architects practices correlates with

both the size of the practice and its location. For example, according to analysis of all

commissions (by value) in 20056

:

58.0% went to practices of 11 or more architects 60.5% went to practices in London and the South East

Whilst this is a fair reflection of a majority of markets (including offices), it is not true ofLuminas

largest end customer base, private housing. In this market, commissions are far more likely to

go to smaller and regional practices (73% of work is undertaken by firms of ten or fewer

architects), making small scale and regional architects fundamental to the success ofLumina.

3.1.2 The UK Lighting MarketThe market for lighting equipment was valued at 1.28bn in 2003 7

3.2 Competition

, selling through over 850

distributors and retail chains.

The biggest competitor to Enlighten Groups Lumina is the 2D, plan-view lighting design

created by architects and lighting designers using CAD. Lighting designers themselves can

also be considered competition and indeed, Lumina will impact their trade.

Though a range of 3D simulation tools such as 3DS Max have been created in the last few

years, Lumina has no direct competition to date. Existing 3D software has been developed for

markets other than those targeted by Enlighten Group. Key among 3D simulation tools with

6Mirza & Nancy:Architect Market Report 2005

7AMA Research: Lighting Market UK 2004


15/40


16/40


17/40


12

Environmental Issues

The UK governments commitment to the Kyoto treaty (requiring a reduction in emissions of key

greenhouse gases to 5% below 1990 levels) has resulted in a series of building regulations

requiring conservation of fuel and power. The most recent of these, which came into force on

6

th

April 2006, aims to increase the energy efficiency of new buildings by 20%. In conjunctionwith earlier changes to regulations, efficiency requirements will have increased by 40% since

2002.

Given that lights account for approximately 14% of the UKs total energy consumption 19

, the

contribution that lighting can make is critical. Lumina will encourage lighting in buildings to be

more efficiently designed so as to reduce energy consumption: for example, by preventing the

over-lighting of locations, taking better account of natural light sources and by the use of more

specific task lighting. It will also allow architects and their clients to select lighting fixtures

according to their energy consumption.

Lumina will allow architects to meet the UK Building Regulations requirement to calculate the

energy rating of the lighting in a building, at the touch of a button.

4 Marketing

4.1 OverviewWhile the Lumina solution contains some established features along with novel elements, the

complete product is innovative and unique. Enlighten Group is aware of the costs associated

with launching complex products, and has developed a marketing plan that will minimise risk

and optimise return.

4.2 Strategy

The plans strategy, objectives and implementation are summarised below. Detailed plans have

already been assembled and can be found in Appendix A.

Phase 1 - Six months prior to launch

Prior to launch, Enlighten Group will establish and cultivate working relationships with key

architects practices and industry press. The objectives will be to:

19DEFRA:Energy efficiency measures under the climate change levy package


18/40


13

Involve industry experts and opinion leaders in the latter stages of product development

to generate buy in and increase credibility

Generate media awareness through relationship building

Prioritise architects practices according to level of activity

Phase 2 - Years 1 to 3 Architect Focus

For the first two years, the company will focus exclusively on the core market (architects) with a

push strategy that has the following objectives:

Create awareness ofLumina among all architects

Communicate functionality, benefits and end customer need

Generate trials

Encourage habitual use

The 7,968 architects practices will be tackled as three subgroups over this 2 year period.

Following further research and classification, these will be grouped and tackled as follows:

Year 1 (Months 1 to 3) - The top 250 architects practices (in Enlighten Groups markets)

Year 1 (Months 4 to 12) - The next 1,000

Year 2 and Beyond - The remaining 6,718 practices

As can be seen in Figure 4, the marketing activity is both comprehensive and low cost. The

bespoke activities include:

Free or discounted licenses where practices are expected to generate high volumes of

hosting revenue or guarantee case study opportunities

A micro site (or dedicated area of the company website) offering a basic product demo

will be developed to support advertising, PR, and sales opportunities

The creation of case study activity with industry press is a core competence of the

company and will be a key focus of our PR function

The company will offer a white label web hosting option to incentivise higher spending

practices


19/40


20/40


15

Figure 5: Marketing Acti vity Year 3 onwards

Year 3 onwards End Customers(N.B. architect focus cont inues as per Figure 4)

Case Studies Focusing on customer benefits e.g. involvement, cost savings andconvenience.

Exhibitions Undertake trial

Direct ResponseAdvertising

Undertake trial (if unsuccessful, reinvest funding in PR activities)

Micro Site Dedicated site address showing customer based case studies andpartner architect directories

Other See Appendix A for full details

4.3 Pricing Strategy

Pricing for the core products can be separated into three sections and is as follows:

License (per unit): 1000 (subject to discretionary discount)

Hosting Fee (per end customer): 100 (architect adds own margin)

Lighting Sales discount: c10-15% (on supplier standard retail price)

5 The Company and Management

5.1 Management Team

A summary of the management team, all of whom are currently studying at Tanaka BusinessSchool, is presented below and their CVs are collected in Appendix D.

Mike Casassa (Chief Executive Officer) has run his own lighting design business based in

Seattle for over five years. He has worked closely with numerous architects and well

understands the needs of Enlighten Groups core market.

Rob Kemp (Commercial Director) is a lawyer who has worked in start-up companies, in

software development and in a major property development project. His legal and commercial

skills will be used to negotiate contracts for software development and sales.

Adrian Marrocco (Chief Operating Officer) has worked in the building services industry for the

last seven years, most recently as a finance director. He has set up many companies and is

experienced in the teething problems associated with start-ups. Adrian will be responsible for


21/40


22/40


17

6.3 Timeline

2006 2007

May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar

Operation Companyformation

Establishoffice/hireadmin staff

Finance Raiseinitialcapital

SoftwareDevelopment

Recruit ITDirector

FinaliseInitialSpecification

Contractdevelopers

UserInput

PrepareBetaVersion

Internaltesting anduser trial

GoldVersion

1 Feb:launch

Web SiteDevelopment

Hire juniordevelopers

Marketingand PR

Preparatory PR work 1 Feb:launch

7 Business Model

Enlighten Group is seeking 2m to fund development of the software, the web site and

company set-up. The development period is anticipated to last nine months during which time

no sales are expected. Development will be fully outsourced, but management of the software

development will be performed in-house by Enlighten Groups IT Director. Marketing activities

will commence during the development period and an aggressive campaign will be started to

raise awareness of the product with architects.

The revenue stream is forecast to increase from 2m in Year 1 to 6m in Year 3. In Year 3approximately 50% of the revenue is anticipated to come from hosting fees, 25% from lighting

fixture sales commission and 25% from software licensing to architects.

8 Risks

8.1 Industry Risks

Enlighten Group shares many of the risks inherent to the construction industry, the main risk

being that construction will slow down. Should this happen, Enlighten Groups business will

inevitably slow as a result. Reasons for this could range from rising raw material prices to

interest rate fluctuations. A rise in the price of materials can have a significant affect on

construction, since end customers are price-sensitive, even those in higher income brackets.

As Enlighten Group relies on home owners to build new houses or refurbish existing spaces,

business will be directly affected by fluctuations in personal income caused by changes in

interest rates, employment and the economic cycle.


23/40


24/40


25/40


26/40


27/40


28/40


29/40


30/40


25

b. Sensit ivity analysis 1: 25% Reduction in Price

Set up Trading Trading Trading

Mth 1-9 Year 1 Year 2 Year 3 Cumulativ

Profit & Loss Statement

Revenue

Software license fee 0 204,000 804,000 1,200,000 2,208,00

Hosting fee 0 1,080,000 2,160,000 2,400,000 5,640,00

Commission 0 345,600 921,600 1,280,000 2,547,20

Total revenue 0 1,629,600 3,885,600 4,880,000 10,395,20

ExpensesPayroll 525,000 1,083,000 1,188,000 1,188,000 3,984,00

Depreciation 95,833 310,833 325,833 204,167 936,66

Administration 200,000 300,000 400,000 400,000 1,300,00

Marketing 150,000 273,000 381,000 465,000 1,269,00

Total expenses 970,833 1,966,833 2,294,833 2,257,167 7,489,66

(Loss)/profit before tax -970,833 -337,233 1,590,767 2,622,833 2,905,53

Tax 0 0 84,810 786,850 871,66

(Loss)/profit after tax -970,833 -337,233 1,505,957 1,835,983 2,033,87


31/40


32/40


33/40


34/40


29

Set up Trading Trading Trading

Mth 1-9 Year 1 Year 2 Year 3 Cumulative

Balance Sheet

Fixed AssetsCost 882,500 942,500 982,500 1,022,500 1,022,500

Accumulated depreciation 95,833 406,667 732,500 936,667 936,667

Net book value 786,667 535,833 250,000 85,833 85,833

Current Assets

Trade debtors 0 325,710 715,810 893,000 893,000

Bank & Cash 281,389 -135,495 1,225,088 3,571,713 3,571,713

281,389 190,215 1,940,898 4,464,713 4,464,713

Current liabilities

Trade creditors 38,889 47,750 54,853 762,933 762,933

Other creditors 0 72,765 159,915 199,500 199,500

38,889 120,515 214,768 962,433 962,433

Net current assets (NCA) 242,500 69,700 1,726,130 3,502,280 3,502,280

Net assets 1,029,167 605,533 1,976,130 3,588,113 3,588,113

Financed by:

Called up ordinary shares 2,000,000 2,000,000 2,000,000 2,000,000 2,000,000

Retained profits (losses) -970,833 -1,394,467 -23,870 1,588,113 1,588,113

1,029,167 605,533 1,976,130 3,588,113 3,588,113


35/40


36/40


31

D. Management CVs

MICHAEL CASASSA

DATE OF BIRTH 15 June 1973

NATIONALITY American

MOBILE 07817 770 978

EMAIL

E d u c a t i o n

[email protected]

2005-06 Tanaka Business School at Imperial College LondonMBA Full-Time Programme

1992-97 University of Washington, United States of AmericaBA English GPA: 3.2 / 4.0

Career History

2000-Present MIKE CASASSA ELECTRICAL ADMINISTRATION(Electrical and lighting design business)Owner- Successfully opened and managed my own business for five years designing

electrical and lighting systems with state architects and electrical contractors-

Supervised team of three employees on large group of projects whilesimultaneously acting as project manager- Consulted directly with clients on each project and translated verbal needs into

technical lighting and plan design- Prepared all business paperwork, including tax forms, income statements, and

employee wage statements throughout five-year period- Acted as project manager, accountant, client manager, and lead designer for all

work assignments. Successfully completed all projects on time and withinspecified budget

1999-00 ENERTECH SYSTEMS INC(Lighting design company)Junior Electrical Administrator- Estimated cost of potential lighting design projects throughout the Los Angeles

area and - assisted senior administrators with the process of bidding for certainjobs

- Trained and supervised six employees on several lighting design and retrofitprojects

1998-99 WARNER BROS INC(Film production company)IT Consultant, Television Department- Collaborated with fast-paced group of IT professionals to install hardware and

software systems for all television studios at Burbank location- Resolved all network and hardware problems that arose during television

production

1997-98 PM ENTERTAINMENT(Film production company)Production Coordinator- Assisted line producer by drafting daily shooting schedules, approving all shooting

locations and confirming that each production unit upheld strict timelines

- Coordinated production crew schedule with talent schedule to ensure two unitscould work together seamlessly

Addi tional Skil ls & Achievements

IT Skills Applications: Illustrator 1 0 , Final Cut Pro 3, Photoshop 7, Director; Flash MX,Dreamweaver, Office 20 0 3 ; Languages: HTML, Visual Basic 6; Operating Systems:Windows XP, NT, Mac OS 10 , Linux

Languages Spanish (I)Interests Composing music, creating short films, competing in team sports, travel


37/40


38/40


39/40


34

JAMES POWELL

DATE OF BIRTH 18 November 1970

NATIONALITY British

MOBILE 07913 994 222

EMAIL

E d u c a t i o n

[email protected]

2005-06 Tanaka Business School at Imperial College London

MBA Full-Time Programme1991-95 Manchester Metropoli tan University, United Kingdom

BA (Hons) Retail Marketing Class II(i)Awarded Best Dissertation Prize

Career History

1999-05 VIRGIN MOBILE TELECOMS LTD

2003-05 Product Marketing Controller- Responsible for the strategy, sourcing, project management, product

development, and the complete marketing mix for all physical products- Formulated and implemented the department's strategy, annual budgets and

short term forecasting- Managed all manufacturer relationships from account manager through to

managing director level. This purchasing responsibility included the negotiation ofpricing, funding and the optimisation of supply

- Managed the research and development of the product range and formulated thepricing and marketing activity to optimise the performance of that range

- Oversaw the life cycle of the range, from launch through to phase out. Successesincluded achieving regular critical first to market status whilst maintaining thelowest average level of subsidy cost in the UK telecoms industry

- Initiated, researched, sourced and developed an exclusive handset brand,`Lobster'. The successful project resulted in the first of those products sustaininga top 10 position in the UK from launch

- Consulted and advised Virgin Mobile's major retail partners on product trends- Led a functionally diverse team. In addition to day-to-day management, this

included resource planning, recruitment, and staff development1999-03 Product Marketing Manager

- Responsible for all handset marketing from research briefing through to activityimplementation

- Managed the day-to-day operational relationships with all handset manufacturers

- Planned communication strategy with the brand and PR functions and agencies- Project managed the development of 100 handsets from selection through to

launch- Led a cross-functional team to create a stock management system that optimised

operational efficiency and availability whilst minimising costs

1995-99 DIXONS STORES GROUP1997-99 Senior Product Manager

- Managed marketing, merchandising and performance of the PC product group- Increased sales and margin by improving the range, merchandising, and

advertising (resulting in market share growth in all key product areas)- Oversaw the successful launch of new product and categories including Psion

Series 5, Windows CE and Dixons' entry into the laptop market- Developed and delivered the department's strategy, annual budgets and

forecasting- Reduced costs through improvements to distribution and reducing stock levels

1995-97 Product Manager/Assistant Product Manager- Responsible for the implementation of the department's marketing strategy- Managed the product and product group level forecasting- Developed staff and customer friendly communications materials

Add it ional Ski ll s & AchievementsLanguages French (I)Interests Live music, sport, comedy, theatre, pubs, outdoor pursuits, travel


40/40

mba business plan

Documents