Assignment on New Business Venture: EDUCATION TV

Course: Introduction to Business-501

Submitted To
Md. Masudul Haque
Assistant Professor

Submitted By
Group No: 5
Section: B
Md. Nur Hossain

ID: 150361

Aninda Roy Dip

ID: 150362

Anik Uddin Ahmed

ID: 150363

Md. Talha Talukder

ID: 150364

Md. Rajiur Rahman Raju

ID: 150365

Bangladesh Institute of Bank Management

Date of Submission: April 2, 2015

Table of Contents
Particulars

Page Number

Executive Summary

iii

Education TV

Company Summary

Market Segment

Products or Services

Sources of Earning

11

Pricing

12

Promotion

13

SWOT Analysis

14

Social Responsibility

16

Porter five forces analysis

17

Management Segment

20

Financial Segment

22

Bibliography

26

Executive Summary
EDUCATION TV is the educational based TV channel broadcast throughout the
Bangladesh in order to spreading knowledge, make the education more easy and
efficacious and to ensure the national development as well. Our vision is to be a premier
TV channel in Bangladesh and contribute significantly to the educational development in
Bangladesh. We will ensure all required instruments to make a highly educated and well
developed nation. We, as a premier broadcaster of our country, shall adhere to highest
ethical standards and values of our society. We shall cast our programs with objectivity,
integrity and absolute professionalism. It will be a partnership business where each
partner will contribute the same portion of capital and profit and loss will be allocated
according to that portion of the capital. In case of domestic purpose we are targeting 2
segments; city area and rural area. For international market we are targeting South Asian
countries & other different developing countries. Our main products or services include
Analysis of academic book, study for job (Bank, Multinational Company), BCS session,
world competitive exam ( GRE, GMAT, SAT, GED), IELTS ( Speaking, Listening,
Writing & Reading), computer learning and access of internet, training to develop skill,
learning for mother, health and neutrino etc. Advertising is the main source of earning of
our TV channel. Social responsibility is the integral part of every business entity and as
our business is closely concerned with the society, we are so much cautious about our
social responsibility.20% of the whole profit will be contributed to the schooling of the
street and poor people, 5% of the profit will be allocated to ensure the nutrition and good
health of the street and poor people and many more steps will be taken. Our objective is
to earn profit through the assurance of making an educated nation, wealth maximizing
through national development and eradicate poverty from the country by making
productive human resources.

3
iii

EDUCATION TV
EDUCATION TV is the educational based TV channel broadcast throughout the Bangladesh
in order to spreading knowledge, make the education more easy and efficacious and to ensure the
national development as well.
We are arranging different types of TV programs like the explanation of academic books, job
related study, curriculum study and different training programs.

Vision:
To be a premier TV channel in Bangladesh and contribute significantly to the educational
development in Bangladesh.

Mission Statement:
We will ensure all required instruments to make a highly educated and well developed
nation.
We, as a premier broadcaster of our country, shall adhere to highest ethical standards and
values of our society;
We shall cast our programs with objectivity, integrity, and absolute professionalism
We shall harness new talents from all fields of our cultural life, nurture and promote their
growth, and place them forward
We shall commit ourselves towards satisfaction of each of our viewer, worldwide, and
will be responsive to their expectations

Objectives:

To earn profit through the assurance of making an educated nation.

Wealth maximizing through national development.
Creating and assuring job opportunity for the country people
Eradicating poverty from the country by making productive human resources.
Uphold the countrys prestige throughout the world.

Company Summary
Company Name:
EDUCATION TV
Location:
40, ShahidTajuddin Ahmed Sarani, Tajgaon I/A, Dhaka -1208, Bangladesh.
Company Ownership:
It will be a partnership business where each partner will contribute the same portion of capital
and profit and loss will be allocated according to that portion of the capital.
Name of the Owners:
There are 5 owners of the company. They are as follows according to their name:

Md. Nur Hossain

Aninda Roy Dip
Anik Uddin Ahmed
Md. Talha Talukder
Md. Rajiur Rahman Raju

Total amount of investment:

Total amount of investment is BDT 40000000 which will be financed 50% by owners fund and
50% by using debt. This will take from:

Commercial Banks
Non-Banking financial Institution
Financial institutions (that give loan for different specialized sectors).
Borrowing from relatives and friends

Startup Summary
Particulars

Cash Required
Current Assets:
Office Equipment
Long Term Assets:
Plants & Equipment
Raw Material Purpose (1 Machine)
For Production Purpose (2 Machine)
Motor Van
Business Premises (Rent of Factory,20000 Square feet)
Warehouse & Maintenance cost (Per Month 50000)

Amount of
Taka

Amount of
Taka

50,00,000
10,00,000

20,00,000
55,00,000
12,00,000
24,00,000
6,00,000

Intangible assets
License fee

1,00,00,000

Collecting Material Cost:

Cost Cleaning staff(Per Year)
360000
Estimation of Incentives

3,60,000
10,000
2,42,90,000

Total

Market Segment
Target Market: Our primary target is to capture our local market. Then we will go for
international market.
Local market:
In case of domestic purpose we are targeting 2 segments:
1) City Area
2) Rural Area
1) City Area: In this market segment, we have mainly focused on Division town and district
town. This part is very crucial to us. We believe that if our TV channel becomes popular in
urban area, it will be benefactor for us to achieve our ultimate goal. That is why we have taken
some special strategy for urbane area to make our TV channel more accepted and more popular.
For example, we have planned to make a strong advertisement throughout the city area.
2) Rural Area: This segment includes the every Thana area and other local part of the country.
Since we want to widespread our TV channel throughout the country, bucolic area is also
important to us. For advertising our TV channel, we want to make different types of program like
debating, seminar and quiz in different schools and college in city area.
International market:
For international market we are targeting South Asain countries & other different developing
countries. In primitive stage we are not planning to broadcast our TV channel in overseas but we
have a keen intention to broadcast later.

Products or Services

Analysis of Academic Book

Study for Job (Bank, Multinational Company )
BCS Session
World Competitive Exam ( GRE, GMAT, SAT, GED)
IELTS ( Speaking, Listening, Writing & Reading)
Computer Learning and Access of Internet.
Training to develop skill
Learning For Mother
Health and Neutrino.

Analysis of Academic Book

Analysis of academic book is the main product in our business. We want to impart every book
from class 5 to class 12 at different times in a day by our TV channel. Besides we want to
emphasis the subjects like Math, English, General Science, Social science, ICT, History etc
which seem difficult to the students. For SSC and HSC student, we want to arrange special
session for the subjects of accounting, Finance, Marketing for the group of Business
Administration; Physics, Chemistry, Biology, Hire Math etc for the group of Science;
Economics, Geography, Statistics etc for the group of Human Studies.
Generally we know that our country does not have sufficient adroit teacher. Mainly the country
people face a great scarcity of adept teachers. And it is so chronic for some difficult but crucial
subjects like English, Math, Accounting, Finance, Economics, Physics, Chemistry etc. since we
will arrange and operate our classes by the most renowned and well knowledge teacher, we think
that the whole country students will be benefited and we will can assure our business purpose
and goal.

Higher Studies:
It is true that our country students getting higher studies face a lot of problem in their studies. So
we have planned to identify some most difficult and most demandable subjects and to make a
season for those subjects. We will generally conduct those classes by the reputed teachers from
the reputed universities throughout the country to ensure higher quality to the students. We
believe that this program will be more popular to students which will ensure our popularity and
growth. We want to adorn this season for the degree of:

BBA
MBA
LAW
English
Economics
ACCA
CAT and so on.

BCS and Job

To become a BCS holder or to get a good job is the ulterior motive of more than 90% students.
And it is obvious that our countrys job examination is totally different from the students
academic study. For example a student accomplished his post and higher graduation from the
subject of finance but when he will give a job exam, he has to face the questions from the subject
of Bangla, English, General Math etc. It is natural that the student will not face any question
from his core subject. That is why our countrys students are so much worried about the job and
BCS examination. And considering about this matter, we want to arrange a season based on job
and BCS. Here all the matters related to competitive examination will be imparted with
convenient strategy by the most talented students and teachers. The related topics in this seasons
are:

Math (MCQ & Written)

English (MCQ & Written)
Analytical Ability
Critical Reasoning
General Knowledge
Bangla (MCQ & Written)

GRE, GMAT, SAT, IELTS

It is fact that our country students performance for international competitive examination like
GRE, GMAT, SAT, IELTS is very poor. As our country cannot ensure higher study for all the
students, we emphasize our students to participate international admission test. For this reason,
we want to allocate a program to the study in abroad. In this season, we will assign some
preceptors to scrutinize the books which are so crucial for these examinations. Some of the books
are:
9

Barrons SAT, Cliffs SAT

GRE Big Book, GRE Math Bible
Official GMAT Book
Kaplans GRE & GMAT

Computer & Vocational Training

Present era is the era of technology. Now computer is using in every aspects in our life. In
modern era every type of activities are done promptly and accurately by the help of computer. So
we want to make a program based on computer, internet and other technology. Besides,
vocational training is very crucial for creating employment and becoming self sufficient. So we
also cherish to make a very attractive and pragmatic vocational training program.

Social and Cultural Attitude

Morality, Humanity, Integrity, Norms, Behavior etc directly affect to the culture and society as
well as the whole country. So we want to organize a program based on this matter to ensure a
happy society and to attract the people in our TV channel. We also want to make a program
related to the religion for ensuring spiritual peace and happiness to the society.

10

Sources of Earning

Advertising
Download fee of the lecture through internet
Selling books and Articles
Demanding Goodwill charge
Selling ticket for arranging Debating, Seminar etc.

Advertising
Advertising is the main source of earning of our TV channel. The 85% 0f the total earning will
come from this source. As our TV channel is education based, we have a great opportunity to get
the advertising from some brands which are closely related with education like book Publication
Company, pen producing company, private schools, college & universities. There are also many
coaching centers like Saifurs, UCC, Udvas etc in our country and I think they will be highly
eager to advertise their products and services via our TV channel. There are also many training
institutions like BIBM, NIDA, also be interested to advertise through our TV channel. Now
many banks are providing different types of services such as school banking and they will be
highly interested to inform their clients about their services via our TV channel.
Besides, since our channel is highly concerned with youngster we have a huge opportunity to get
the advertising of some renowned brands in Bangladesh like telecommunication brands,
toiletries, cosmetics, cold drinks, mobile brands, computer & laptop brands and so on. In
Bangladesh, the most cherished brand for the TV channels is telecommunication. And the most
telecommunication companies are targeting the young generations in our country. So it is very
probable that we will attract these companies very easily because our channel is closely
concerned with the young group in our country. Besides, we are expecting electronic brands like
mobile phone, laptop, and computer as they are also targeting young group. We are also
arranging health and nutrition program where we are longing for getting advertisement of this
related firms such as Square, Senora, Acme, SMC etc. in addition to these, we are also coveting
the advertisement of the firms related to our programs.

Other Sources of Earning

We are also expecting to generate our income from selling books, taking charge when lectures
will be downloaded via internet, demanding good will charge from the teacher, selling tickets for
arranging debating, seminar, quiz etc. As we will arrange our every lecture by the reputed teacher
and most convenient way, it is a great opportunity for us to converter this lectures into books.
And it will help us to enhance our income. Besides, some teachers will intend to participate in
11

our program to amplify their goodwill. At that time we will get some opportunity to take charge
from them and to widespread our income. Since we are education based business, it is very
auspicious for us to arrange different types of educational program. And it will help us to
increase our income.

Pricing
Pricing strategies usually change as the product passes through its life cycle. The introductory
stage is especially challenging. Our company bringing out a new product faces the challenge of
setting prices for the first time. We can choose between two broad strategies:
Market skimming pricing
Market penetration pricing
We are following market penetration pricing for local market & market skimming pricing for
International market.

12

Promotion
Promotion is one of the most important matters for every organization. So we want to

carry these activities in the most strategic ways. For promotion, the procedure which we
want to follow are:
Making rally in every district: for informing and making popular about our TV channel
(EDUCATION TV), we want to arrange a rally in every district and some important
Thana area. The people of this rally will wear school dress bearing festoon, placate etc
which help to make a positive impression in peoples mind.
Arrangement of educational program: As our TV channel is educational based channel,
we want to arrange different educative programs like debating, quiz, seminar in different
reputed schools throughout the country. And we think that it will create a great popularity
to our TV channel.
Advertising using both electronic and print media: at the incipient period, we will
advertise our TV channel in both electronic media (other TV channel) and print media
(like-newspaper, magazine etc).
Web Media: we will also use web media or Internet to publish our TV channel. We want
to use online advertisement (Face book, Twitter, Gmail, Yahoo etc).

13

SOWT Analysis
A SWOT analysis (alternatively SWOT matrix) is a structured planning method used to evaluate
the strengths, weaknesses, opportunities and threats involved in a project or in a business
venture. A SWOT analysis can be carried out for a product, place, industry or person. It involves
specifying the objective of the business venture or project and identifying the internal and
external factors that are favorable and unfavorable to achieve that objective. Here we have done
SWOT analysis for our company.

I N

I N

I N

I N

14

Internal factors:

STRENGTH:
First mover in the country.
Availability of experienced teachers at lower payment.
Availability of office staffs at lower cost.
People of Bangladesh are more enthusiastic to learn.
Gradual decreasing of fixed and variable costs.
Appearing as a country development patronizing TV channel

WEAKNESS:
No previous experience.
Huge starting cost.
Comparatively high working capital.
Strict governments rules and regulations.
Need to carry communication with different level of people.

External factors:
OPPORTUNITY:
Very possibility to increase its wings (School, College, University, Training Institution
etc).
Possibility to build up a national recognized brand.
Huge opportunity to make it as an international recognized brand.
Creating employment, making women empowerment and reducing poverty.

THREAT:
Local and overseas TV channels.
Government intervention.
Different coaching & training centers throughout the country.

Social Responsibility
15

Social responsibility is the integral part of every business entity and as our business is closely
concerned with the society, we are so much cautious about our Social responsibility. We will take
some specific initiatives to carry our Social responsibility. These are:
20% of the whole profit will be contributed to the schooling of the street and poor people.
5% of the profit will be allocated to ensure the nutrition and good health of the street and
poor people.
5% of the profit will be distributed to the poor unemployed people for purchasing job
application form.
Free seminar and training program will be arranged throughout the country for making
consciousness of family planning, empowerment of women and ensuring good health and
nutrition.
Organizing different cultural programs to amplify social brotherhood and peace.

Porter Five Forces Analysis

16

Porter five forces analysis is a framework to analyze level of competition within an industry and
business strategy development. It draws upon industrial organization (IO) economics to derive
five forces that determine the competitive intensity and therefore attractiveness of an Industry.
We have used Michael Porters five forces analysis of intrinsic long-run attractiveness of a
market to plot the industry and competition for our company.

Threat of Threat
new of new
competitors
competitors
entering the
entering the
industry industry

Bargaining
Bargaining
power of power of
Rivalry among
Rivalry among
the industrys
the industrys
current competitors
current competitors
suppliers
suppliers
in the industry
Rivalry
among
existing firms: in the industry

Threat of Threat of
substitutes
substitutes
producedproduced
by other by other
industriesindustries

Bargaining
Bargaining
power of power of
the industrys
the industrys
customers
customers

17

As our business is education based TV channel which is not available in our country, we have to
face a little threat of rivalry among existing firm. There are also some other TV channels which
are broadcasting somewhat similar type of programs, that is why we are also cautious about the
threat of rivalry among existing firm.
Globalization:
Since the world is gradually coming closer, the competition is increasing day by day. So in this
era of globalization if we want to survive successfully, we need standard education and training.
So the growth rate of this industry is very high which allure a chronic competition among
existing firm.
Competition among competitors:
This market is not yet competitive enough. There is no firm that directly casting this types of
programs. There are very few channels which provide few programs based on education
Switching cost:
Switching cost is very high in this business which is a matter of concern about serious
competition.
From the above discussion we can conclude that we will face little threat about the rivalry among
existing firm which is auspicious for us.

Threat of new entrants:

Legal barriers:
There are not much legal barriers to enter the market. Current TV channels and other people or
organizations may enter the market as this is the lucrative sector in business.
First mover advantage:
In our country there are many TV channels that have been casting different programs like News,
Natoketc but no channel is casting highly education related programs which we have intended.
So it is obvious that we will enjoy the First mover advantage.

Threat of substitute products:

18

Substitutes of our products are mainly coaching centers, house tutors, training institutions and
other teaching academy. But as our process and medium are totally different from them, they will
not be considered as threat able substitute product.
Bargaining power of firms that come for advertising:
As there are more than 30 TV channels in Bangladesh, the firms giving advertisement to the
channels have comparatively more bargaining power. Besides, illegal competition between the
TV channels accelerates them to control the bargaining power on their hand. But we expect that
as we are closely concerned with young as well as whole groups, they will not affect us by their
bargaining power rather after the ending of the incipient period, it possible for us to manipulate
them.

Management Segment
19

Our Organization is a Partnership oriented organization. Here All the Owners are director among
them chairman will be elected. Promotion & Incentives are made on the basis of performance of
the employees according to our HR policy. For maintaining the factory environment we follow
rules & regulations of labor law 2006.Different benefits like compensation & insurance facilities
are given to the employees & workers. The key personnel are remunerated according to our
salaries structure.Our Management Structure is as follows:

Salaries Structure:
20

Job Responsibility
Managing director
Manager
Assistance manager
Executives
Workers
Other staffs
Total

Qualification
MBA
MBA
MBA
BBA
SSC
SSC

Number
1
4
5
6
10
10

Annual Salary
24,00,000
48,00,000
36,00,000
21,60,000
240000
360000
1,35,60,000

Health & Safety Issues of the employees:

Bangladesh Labor Law Act-2006
Fire Extinguisher & Fire sprinkler
Smoke Detector

Financial Segment
21

 Sales Forecasting
45000000
40000000
35000000
30000000
25000000

2014

20000000

2015
2016

15000000
10000000
5000000
0
Figure:Sales Forecasting(In BDT)

Profit Forecasting

EDUCATION TV
22

Income Statement
For the year ended 1st January 2014 to 31 December 2014
Particulars
Turnover (net off VAT)
Less: Cost of goods sold
Gross Profit
Administrative and Other Expenses
Financial Expenses

Amount of Taka
24300000
20000000
4300000
800000
5000001300000

Net Operating Profit

3000000

Net Profit Before Tax

3000000

Less: Tax Holiday Reserve

Net Profit after Tax

200000
2800000

EDUCATION TV
23

Balance Sheet
For the year ended 1st January 2014 to 31 December 2014
PARTICULARS
ASSETS:
Non-current Assets:
Property, Plant and Equipments
Capital work in Progress
TV License
Total Non-current Assets

Amount of Taka
7500000
5000000
1,00,00,000
22500000

CURRENT ASSETS:
Inventories
Trade & Other Receivable
Advances, Deposits & Prepayments
Investment
Stores & Spares
Cash and Cash Equivalent
Total Current Assets

5000000
1000000
1000000
5000000
3000000
2500000
17500000

TOTAL ASSETS

40000000

EQUITY:
Capital

20000000

LIABILITIES:
Long Term Loan

15000000

CURRENT LIABILITIES:
Short Term Loan
Total Current Liabilities

5000000
20000000

TOTAL EQUITY AND LIABILITIES:

40000000

EDUCATION TV
24

Cash Flow Statement

Particulars
A. Cash Flow from Operating Activities
Cash At the Beginning of the year
Cash Collection from different sources
Cash paid to Suppliers & Employees
Cash Generation from Operations
Bank charge and interest paid
Net Cash from Operating Activities

2014-2015

40000000
(2860000)
(2000000)
35140000

B. Cash Flows from Investing Activities:

Acquisition of fixed assets

(9000000)

Cash and cash equivalent at the end of the year

26140000

25

Bibliography
Websites:
www.wikipedia.com
http://en.wikipedia.org/wiki/Bangladesh_Television
Books:
PRINCIPLES OF MARKETING by PHILIP KOTLER and GRAY ARMSTRONG;
ELEVENTH EDITION.

26