Wing & Prayer 10118382 Parth Sheth.

8/13/2019 Wing & Prayer 10118382 Parth Sheth.

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Wing & Prayer

Parth Sheth,

10118382.IBM.


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Table of Contents

Sr.No Title Page Number

1 Executive Summery 3

2 Introduction 4

3 Problems & Statements 5

4 Data Analysis 6

5 Key Decision Criteria 7

6 Alternatives Analysis 8

7 Recommendations 9


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Executive Summery

Stefan a Canadian university student worked in bungee jumping Company at

amusement park in United States for two and a half month as and has experience of

more than 150 jumps during that time period.

He wants to start his own bungee jumping company. But, was facing many

problems. The major issue was finance. But he managed to get it somehow.

Further he has decided to start his business as a partnership firm. So he had entered

in partnership contract with his friend Zach and decided to share profit and loss in

ratio of 50-50 percentage.

Finally they have started to make the business plans, strategies, price, costing and

many more. They have also decided two places in Ontario where they can starttheir business. But, there was only confusion of when to implement the project.

Overall it is recommended to start the business as soon as possible in current

summer so that they can acquire the money and market. And repay all debts.


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Introduction

Bungee jumping is a sport brought in modern world by group of students of

Oxford University during 1960. Bungee jumping become a commercial curiosity

sport during 1988 in New Zealand where ancient vines were replaced with modernmanufactured fiber cords tested to withstand more than 1361 kilograms and were

bamboo pole towers were replaced with bridges spanning deep river gorges.

Day by day bungee jumping has become a popular sport in United State. There

were only 20 companies during in 1991 offering this sport. But, there was drastic

rice in companies offering this sport in 1992 which was about 200 companies and

further it had go 400 companies in future years. There was not only increase in the

number of companies but peoples participation in sport. During 1992, 1.5 million

Americans experienced thrill of bungee jumping and spent $100 million. Further it

has showed an increasing graph.


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Problems Statement

Problems are part of business and it acts as a hurdle to every business.

Capital

Science Stefan was starting a new business; the biggest problem that he faced was

Capital. As Stefan was a student return Canadian University student he can get

$3000 as interest-free loan. But, to qualify for that loan there were many criteria.

He can even acquire loan from different associations. But they even cost premium

and extra fees. He can also receive money from his parents but they what their

money to be repaid before summers. Further to build some more capital he decided

to be in partnership business with his friend Zach Thompson.

PlaceThere was a big confusion between Stefan and Zach about where to start the

business. At Grana Bend, where then can acquire the crowd of Western Fair

London, Ontario or Zurich ben.

TimeAs it is said time is money Stefan and Zach face the major problem of time.

They cant run their business during winters so, summer is the only season forthem to acquire the profit and start the business. Whereas, on the other side Stefan

had very few time to repay his loan. So to start business in such a short time can be

a problem for them.

Government Rules & RegulationSince Stefan is starting his business in Ontario, Canada, special rules and

regulation are placed by Ontario government for bungee jumping companies.

Special code of conduct of 40 pages is made by govern. Which companies have tofollow? So, this may be a hurdle for Stefan to start the business in Ontario.

So this all above are the problems faced by Stefan to start the business and which

must be overcome as soon as possible. To run the business smoothly.


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Data Analysis

Source of dataSecondary data

As the data is secondary there are various internal and external factors mentioned

by the researcher. That can be further illustrated as a SWOT ANALYSIS.

StrengthScience Stefan has two and half month of experience of bungee jumping at

amusement park in United State. So he has a complete idea and knows each and

every technique of bungee jumping. This act as strength for him to start new

business.

WeaknessThe major weakness of Stefan is Capital. He doesnthave enough capital to start

business. Capital act as a major part of business. Without capital business doesnt

exist. So, for capital he has to borrow money from different association and

friends. This act as major weakness for business.

OpportunitiesAs per the external environment research Stefan get various opportunity that he

can grab like Return to Canada University student loan, and loan from Youth

venture capital program with minimum premium.

ThreatsEver business have competitor and they are the biggest threat to business. This is

the same case of Stefan, there are also various stress faced by him from

government by implementing new laws and by making 40 pages code of conduct

which Stefan have to follow before starting the business3.

So this is the various internal and external environments that Stefan has to accept

and face wile starting a new business.


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Key Decision Criteria

There are various decision should be taken by Stefan before starting a business.

FinanceEvery business requires finance to run business. From where the finance will be

generated is the most important decision should be done by Stefan.

PlaceWhere to start the business? After starting the business money will recover if

business is started at that place? If yes then the place is affordable for theentrepreneur and if Not then what is the alternative option. This decision is done by

Stefan before selecting the place for business.

LaborLabor are the real asset of the company. So type of labor skilled or unskilled, how

much they should be paid and what is the number of labor they require. This

decision should be cleared by the entrepreneur.

OthersThere infinite number of decision done in business. Some of them are name of the

business, what type of partnership bond they want, alternative plane during

emergency and many more.


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Alternatives Analysis

Evaluation of different choices available for achieving an objective usually require

cost benefit analysis life cycle costing and sensitivity analysis which is also called

as alternative analysis.

Every business ma before investing such a large amount in business should have to

do alternative analysis for his business. In case of Stefan he have to make the

future estimation of profit so, he can get a clear picture to invest or go for

alternative plan


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Recommendations

I recommend them to start their business as soon as possible in this summer so they

can they can earn some money and clear off their debts. Even I suggest them to

start with skimming pricing strategy. So, that by keeping less price of sport theycan acquire huge customers and can reach their breakeven soon. Further making

posters they can even provide refreshment drink to people. And can also provide

some discount for group. So that they can acquire more customers and more profit.

Wing & Prayer 10118382 Parth Sheth.

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