TTV2541 TECHNOPRENEUR VENTURE

PRACTICAL ASSIGNMENT 1
CASE 10.2 A New Mobile App !o" A M#$i% Co&&#'i()
Following his graduation from an excellent university with a degree in music and
entrepreneurship, Brian Wright was eager to launch a music related business. Brian
always enjoyed working with new technologies as well as listening to music. Because
of the proliferation of social media sites on the Internet and the advances in mobile
technologies with smartphones, he believed that developing an app! for mobile phones
that brings together a community of fans for their favorite music will ideal "he
development of mobile applications has become one of the largest industries of mobile
technologies and hundreds of thousands of apps exist for mobile users in almost every
category# games, lifestyle, social network, education, business, etc. In the $pple $pp
%tore alone are more than &'',''' apps and counting( many are free, but many others
are not which means mobile applications are truly a growing sources of business.
Brian was confident that the success of the other open sourced communities and
other mobile apps proved that there was a market for his idea( therefore, developing an
app for personal music would be an easy concept for customers to grasp. $lthough
music can be downloaded for free or for small fees, Brian knew that he and his friends
preferred to listen to a particular music and then comment about it. Brian believed that
any true fan of a particular brand of music would want to engage with other like)
minded individuals. $nd, if it was available on a smartphone as an app, then the
mobility issue would ensure success.
When calculating potential revenue, Brian concluded that the best way to
moneti*e the app would be through a reasonable purchase price and then have music
related companies pay for ads that run within the app. %ince he was creating a new
social network community around music, this would certainly be avenue for companies
to advertise. $s Brian began to discussing his idea with his friends, their enthusiasm
convinced him that he needed to act +uickly before someone else sei*ed the
opportunity. $t ,- per app purchase and an estimated four new community members
per month, he would only need a little over -',''' customers to reach ,.,''','''.'' in
annual revenue. $fter looking at his financial forecasts, Brian decided that it was time
to bring his mobile music app to market.
1. Has Brian completed the proper marketing research for this potential opportunity?
Why or why not? Explain your answer in detail.
Answer:
2. Based on the case, are there key mistakes that you would caution Brian about?
Explain your answer.
TTV2541: Practical Assignment 1 Page 1 of 3
*. What specific steps would you recommend to Brian in order for him to better assess
this opportunity?
Answer:
CASE 10.2+ THE CONTRACT PROPOSAL ,P-.e No. *4/0 C1-p(e" No. 102
/ennis /arby owns a small manufacturing firm that produces electronic components for use in
helicopters. 0ost of his business is a result of military and aircraft manufacturer contracts,
although .' percent of revenues come from firms that own or rent helicopters. "he latter are
typically large Fortune &'' companies or leasing1rental firms that work on a contractual basis
for clients.
/ennis would like to increase his revenues from sales to private corporations that own
their own helicopters. %pecifically, he would like to do more business with oil companies that
maintain helicopter fleets for ferrying people to and from oil rigs in the 2ulf of 0exico and
other offshore locations. 3arly this week /ennis received a re+uest from an oil company for
.-' electronic components. 4e turned the order over to his chief estimator, who estimates that
the fixed costs associated with producing these components will be ,5&,''', the unit variable
cost will be ,6'', and the unit selling price will be ,7''.
/ennis will not accept any order on which the return on sales is less than -' percent.
$dditionally, the estimator has told him that a ,.,''' expense can be classified as either fixed
or variable. /ennis intends to take this information and make a decision whether to accept the
contract from the oil company. 4e has to make a decision within the next three days.
1. What is the break-een point for this pro!ect? Will the company make money if it
manufactures the components? "how your calculations.
Answer:
2. #f the pro!ect is profitable, will it proide $ennis the desired %& percent? Explain
your answer.
Answer:
*. 'f what alue is break-een analysis to $ennis? Be complete in your answer.
Answer:
TTV2541: Practical Assignment 1 Page 2 of 3
CASE 11.2+ THE INCOMPLETE PLAN ,P-.e No. *300 C1-p(e" No. 112
When 8oan Boothe drew up her business plan, she was certain it would help her get venture
capital. 8oan is in the throes of putting together a monthly maga*ine directed toward executive
women in the workplace. "he objective of the periodical is to provide information useful to
women who are pursuing careers. "he first issue is scheduled to go to press in 9' days. %ome
of the articles included in this issue are 0anaging :our "ime for Fun and ;rofit,! What :ou
<eed to =now about /ressing for %uccess,! and 0oney 0anagement# /o It >ike the
3xperts.! $ section also is devoted to successful women at work. It is titled Women in the
<ews.! ?ther features include a +uestion)and)answer section that responds to letters and
in+uiries from readers @the first issueAs +uestions were submitted by a group of women
executives, each of whom had been asked to help get the column started by sending in a
+uestionB( a stock market section that reviews industries or companies and points out the
benefits and risks associated with investing in them( and a column on the state of the economy
and the developments or trends expected over the next .- months.
8oanAs business plan consisted of six parts# a summary, a business description, a
manufacturing segment, a management segment, a milestone schedule segment, and an
appendix. When it was returned to her with the rejection letter, the venture)capital firm wrote,
Without a marketing segment, attention to critical risks, and a financial segment, this plan is
incomplete and cannot be favorably reviewed by us. If you would provide us with this
additional information and submit the rewritten plan within the next C' days, we will be happy
to review the plan and give you our opinion within .' working days.!
1. What should (oan put in the marketing segment? What types of information will she
need? Explain your answer.
Answer:
2. )or the critical-risks assessment segment, what key areas does (oan hae to address?
$iscuss two of these.
Answer:
*. )or the financial segment, what suggestions would you make to (oan regarding the
kinds of information to include? Be as specific as possible.
Answer:
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