Rasadsy Technologies T/A SYDNET CELLULAR

Company Background Information

The company as started in 2003 after completed my certificate in Cell phone Repairs in
the cell phone industry. In addition to selling and repairing phones I also sold airtime.
After two years I realised I had to broaden my service offering. I introduced public phone
facility, faxing, photocopying and shoe repairs, cell phone accessories and key cutting
and prepaid electricity.

Business of the Company

We provide the services of repairing cellular phones, selling airtime and prepaid
electricity. We also repair shoes and provide key cutting and public phone services.

Ownership

I am the sole owner of the company. In recent years the manager in charge of the
shoes and key cutting operates those two areas as a unit in which I only own the
machinery and accessories. I invested in the training and only require the rental and
accessory payments from those areas.

Company Vision

The preferred supplier of the offered services in the Boksburg and Germiston area and
be the shop where quality and service are guaranteed the first time round.

Mission

By consistently evaluating our services and adapting where required.

Objectives and Values

Rendering a superior service through providing an honest service based on family

values.

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Current Market Position

Sydnet is situated next to Standard Bank and First National bank branches. Close to
Home Affairs, Post Office , Municipality and the main taxi rank.

Target Market

My target market can be divided into 2 categories. The primary target market is adults
between 20 55 who it typically workers that is paid bi weekly and monthly that resides
mostly in Reigerpark and the Boksburg inner city and surrounding suburban areas. The
secondary target market is the youth.

Place

Customers need to pass the shop to access most essential services like the bank,
home affairs, taxi ranks. Although it is clustered with the essential service section we
are not in the hype area (where Edgars, Shoprite, etc) is situated.

Products

1. Cellular phones and accessories

2. Shoe and leather repairs and accessories
3. Lock and key cutting as well as accessories
4. Public Phone facility, photocopying and faxing of documents

Price

Price according to quality are charged according to the quality product and service
offering which sometimes proves to be more expensive than prices of our competitors.
The competitors offer inferior products (mostly pirated products). Due to the nature of
cellular repairs it is not easy for customers to spot pirated parts.

Promotion

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We do promotions mostly by leaflets. Currently we are working on a website. We are
also looking at sms and email alerts.

Financial Position and Ratio analyses

Currently the company is not meeting expectations. It barely brakes even. This can be
attributed to various factures one of the main which were the not separating of business
account from personal account.

Current Human Resources Position

We are currently two individuals that operate the business. I am looking at employing a
trainee who will be able to assist with the more time consuming items like the repairs.

Current Production Systems

We have the following machines:

Shoe Repair and stitching machine

Key cutting machine
Airtime and Prepaid Electricity Machines x 3
Public Phones x 8
Photo copy and fax machines

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PEST Analysis

Politics does not play a role in our business.

Economics Due to closing of companies and specifically mines in the area

households are no longer able to purchase in access of necessity.

Social The social environment does affect our business. Due to various economic and
other circumstances customers are opting for price instead of quality. This results in
customers having to eventually paying twice for the same product or service.

Technology This results in customers having to eventually paying twice for the same
product or service. In this area we should start raising awareness of this problem.

Opposition The cellular phone market is saturated with individuals who mostly enter
the country to come and work for the bare minimum. They simply ignore all business
rules including quality of products and services. They are not established and are
mostly just in existence for 3 to 6 months. Weve been an established business running
for 7 years consecutive years.

Threat Customers prefer to spend hard earned cash by considering the price only. It
is difficult to convince them the first time but 80 % of them usually come to us when they
are turned away or the shop they purchased from no longer exists after 3 months. This
proves to make customers negative towards all suppliers in this industry.

Strategic Analysis

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Marketing Strategies

In line with building consistency the company will keep in touch and therefore raise top
of mind awareness with customers by announcing the specials and checking on
satisfactory levels via sms with customers. The website and flyers will be used as well.

Financial Planning

Already a separate account for personal use has been opened to ensure that the
personal and business expenses are kept separate. Salary will be set and the additional
financing will be sourced through my other business.

Human Resource Strategies

It is the plan to hire one more permanent and one more temporary employee. This will
assist in terms of the day to day running of the company and enable me to concentrate
and manage the overall business.

Operations Strategies

Unlike in the past where the service at the shop was not available when I tried to focus
on other ventures, the employment of additional personnel would now ensure that even
if I am not there the business continues. The shop front and layout will be changed and
the design include a bigger sign board

Other Strategic Options

Strategic Intervention: Selecting Best Strategy

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Business Stabilisation

We intent stabilize the business through proper cash and daily cash management. The
business is adapting and therefore becomes more reliant on the other income
generating avenues. The business and its availability will therefore not rely on an
individual.

Turn Around Strategy

Harvest

It is the plan to reinvest and diversify the business.

Divesture

Considering to disinvest in the cell phone repair side or to outsource it completely.

Implementation Plan

Activities Responsible Person Cost Timeframe

1. Daily cash Sydney Daily

Management

2. Renovating Contractor R42 000.00 30 June 2010

the shop front

3. Employ 1 Sydney R4500.00 15 June 2010

personnel

4. By weekly Andries and additional 15th and 2nd of

stock taking personnel every month

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