Army Institute of Business Administration (AIBA)

Jalalabad Cantonment

SUBMITTED TO:
Shahriar Tanim
Lecturer, AIBA Sylhet.

SUBMITTED BY:
Ahsanul Mahbub Zubayer – 10116010
BUSINESS PLAN Sadman Sadi – 10116020
Mujibul Imon – 10116022
ON Mahay Alom Noyon – 10116023
Sakif Ryhan – 10116026
GAMING ZONE

Date of Submission:
May 15, 2018
 Letter of Transmittal
15th May 2018
Shahriar Tanim
Lecturer,
Army Institute of Business Administration (AIBA)
Jalalabad Cantonment, Sylhet.

Dear Sir,
With due respect, we would like to inform you that we are honored to prepare our report on a
new business idea of a gaming zone as per required for our BBA program.
This report shows the SWOT analysis, industry analysis, PESTEL analysis, marketing
strategies, marketing mix, and business canvas model including financial analysis on this new
venture. Including brief description of the venture, along conclusion. In our report, we tried to
focus on different strategy of starting a new business and gained depth knowledge and
information about this. We tried our best to show our skill. Finally, we would like to assure
you that we will be there for any clarification, explanation whenever required.
Therefore, we believe the report will serve for its best purpose and hopefully this report will be
accepted. Thank you in advance for your kind assistance.

Sincerely yours,
Ahsanul Mahbub Zubayer – 10116010
Sadman Sadi – 10116020
Mujibul Imon – 10116022
Mahay Alom Noyon – 10116023
Sakif Ryhan – 10116026
Batch: BBA-3

Army Institute of Business Administration, Sylhet.

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 Table of Contents
Serial Content Page
No. No.
1 Executive Summary…………………………………………………………... 3
2 The Business Plan.………………………………………………………….… 4
a. Description of the venture……………………………………………… 4
b. Logo & Tag line………………………………………………………... 5
c. Mission & Vision Statement 5
3 Industry Analysis Analysis…………………………………………………… 6
a. Porter’s Five Forces……………………………………………………. 6
4 PESTEL Analysis……………………………………………………………. 7
5. SWOT Analysis……………………………………………………………… 8
5 Marketing Strategy…………………………………………………………… 10
a. Market Segmentation…………………………………………………... 10
b. Market Targeting………………………………………………………. 10
c. Market Positioning…………………………………………………….. 11
6 Marketing Mix……………………………………………………………….. 11
a. Product………………………………………………………………… 11
b. Price…………………………………………………………………… 11
c. Placement……………………………………………………………… 12
d. Promotion……………………………………………………………… 12
7 Business Canvas Model...…………………………………………………….. 13
8 Financial Analysis…………………………………………………………….. 17
9 CONCLUSION……………………………………………………………….. 20
10 REFERENCE…………………..……………………………………………. 21
11 APPENDIX…………………………………………………………………… 22

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 EXECUTIVE SUMMARY
We have come up with a new business idea of a gaming zone in Sylhet region. We have found
that there are a lot of youth who are interested in gaming and also some people who are looking
for a fun place for recreation. Through our business we can provide our customer a source of
recreation and entertainment. We decided to name our gaming zone S.I.M.S Entertainment.
After the describing our venture we have done the industry analysis, PESTEL analysis and
SWOT analysis to know current situation of the industry and to identify our strengths and
weaknesses. Basically this type of business has not established yet in this region. So as the first
mover we have to great opportunity to grab the market and make highest profit margin in short
period of time.

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 THE BUSINESS PLAN
People cannot work on always, they must have recreation. Mental stress, study load, workload
all these has become a major problem of people and there is no place where they can have fun
with friends and gain some experience at near to their resident. We are going to introduce a
new venture for those who are facing the problem of finding a suitable place for recreation. We
are going to open a game zone in the Sylhet city to deliver an exciting place for those people
who are badly looking for a place for recreation and those who are highly interested in gaming.
Clearly it shows that there is high demand on the market for a place of recreation. We are going
to establish this venture very soon with a high potential and believe of getting successful.

Description of the Venture

S.I.M.S Entertainment will be a partnership business which will provide a place of recreation
for youths through different types of gaming facilities in Sylhet region. This gaming arena will
be situated at Arcadia Tower’s 4th floor with a huge space. This will be new start-up in this
particular region. Targeting the youths of this region, S.I.M.S Entertainment will introduce
different types of innovative and exciting gaming facilities such as, 3D games, indoor games
(football, cricket), LAN gaming, PlayStation gaming and the most exciting and innovative in
the whole Bangladesh that is paintball shooting. As the first mover of this venture we have a
lot of opportunity to grab the market and become sustainable and successful. Apart from that
we got the accurate knowledge about the prices of the different gaming machineries and we
got good gaming experiences. S.I.M.S Entertainment will be a place of electrifying and a never-
before real gaming experience for people who love the excitement of gaming. The gamers will
be charged on an hourly basis on different sectors. S.I.M.S Entertainment will introduce a
modern way of recreation to the youth of Sylhet through various type of real life gaming
experiences. Especially we are targeting the gamers who cannot afford to buy different type of
gaming facilities also there are some games that requires bigger space and screen that it cannot
be placed at home. S.I.M.S Entertainment will give a marvelous experience to the youth to
share a time of fun with friends by playing exiting games in our arena. We want to make the
virtual friendships to real ones through letting players to hear their rivals` breaths and laughs
while playing in the same platform.

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 Logo & Tagline

“Digital Recreation Arena”

Mission Statement
S.I.M.S Entertainment mission is to provide an advanced technology gaming place for the
youths with an exciting environment where the youths can spend their leisure time with high
tech gaming experience and make fun with friends. We are passionate about serving our
customer the best with full of passion, honesty and integrity.

Vision Statement
Create a marketplace to promote the gaming technology among the youth.

Objectives
 To create a good will of the business.
 To encourage youths on gaming sector.
 To provide a place of recreation for the customer.
 To provide our customer the best gaming experience possible

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 Porter’s five Factors in Gaming Zone Industry

Threat of New Entrants:

The threat of new entrants is high in the gaming zone business. Being a developing trend in
technology of our country, any new competitor can easily enter in the business. A little
technological knowledge and proper business plan leads to a new entrance in gaming zone.
Investors with a sufficient capital can easily start the business, as the business is almost new.

Bargaining Power of Buyers:

Being a monopolistic business in nature, Bargaining Power of Buyers will be low. Buyers do
not have any other options to move on. They don’t have any alternative gaming zone where
they can get the service like S.I.M.S Entertainment.

Bargaining Power of Suppliers:

The suppliers of S.I.M.S Entertainment will be Alibaba. Here the bargaining power supplier
(Alibaba) is high. Because, the machineries that S.I.M.S Entertainment is using are not that
much of available in the Asian countries. So, supplier have the ultimate right to set price, at
which S.I.M.S Entertainment is bound to buy them.

Threat of Substitutes:

3D Game- Low

Play Station, LAN game and Online Games- moderate

Paint Ball- low

Indoor Games- High

In overall, the threat of substitutes is moderate. Because, the substitute of S.I.M.S

Entertainment services are- online games and other LAN games. Due to the speed of bandwidth
in our country, online games are not that much favorable. Paint Ball has no close substitute.
And the indoor game has a high substitute as anyone can play in the field, street or at house
terrace. And different mini games can be substitute for the gaming zone industry.

Competitive Rivalry:

Industry competition represents the lowest threat to S.I.M.S Entertainment. Gaming players do
not tend to have a high degrees of brand loyalty, rather they only want to play games and enjoy.

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S.I.M.S Entertainment should not rely on its current trend to give it an edge over competitors.
It must continue to develop the most cutting-edge games and effectively market them to the
gaming public. S.I.M.S Entertainment should continue to dominate in the gaming zone market
by giving new gaming services changing with the technology.

PESTEL Analysis of S.I.M.S Entertainment

 Political Factors:
In order to start any business, an entrepreneur or businessman should analysis the political
factors of a country. So that they can figure out that, the political factors are stable to run the
business successfully. For doing a smooth and effective business some factors are very
essential such as, reasonable tax rate, discount on tariffs, security of the wealth, no chances of
war etc. All these factor must be consider before starting a new venture. Fortunately there are
some political factors that are helpful for this venture in Bangladesh. On the other hand some
factors might affect the business in a negative way. In Bangladesh chances of war is pretty low
but the political condition is not friendly such as there is an insecurity of increase in tax rate
also there is low security of wealth.
 Economic Factors:
Economic factors refers to mean that the how current economic condition will affect the
business and how business will affect the economic condition of the country. In the
development of economic conditions this new venture (S.I.M.S Entertainment) will play a
minor role. S.I.M.S Entertainment will provide a small employment opportunities to the people
of Sylhet region. When the business will expand to different zone it also contribute in reducing
the unemployment rate of Bangladesh. A certain amount of tax will be provided to the
government on different machineries and also of the business. The purchasing power people
and demand for gaming service is increasing very rapidly. So that we can utilize the increasing
trend of demand and increase the profit margin of the venture. That is how we can contribute
to the economy of Bangladesh.
 Social Factors:
These days gaming is more attractive to the young generation because of their connectivity
with new trend of technology. Both male and female have a great interest on gaming. S.I.M.S
Entertainment will be like a place of excitement and experience of digital gaming for the youth.
After a busy schedule of work or study life everybody wants a place where they can relax,
enjoy release tensions from their mind with some great excitement. S.I.M.S Entertainment will

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going to provide such a place where people will enjoy their leisure time with friends specially
in Bangladesh where we can hardly find a place of recreation. Usually in Bangladesh, we have
found that youths spend their leisure time by gossiping and doing stuffs that is not socially
friendly. S.I.M.S Entertainment will give them a place where they could use their leisure time
with enjoyment and excitement.

 Technological Factors:
Now a day’s availability of technology is very easy and developed in Bangladesh. Bringing
new technology in Bangladesh will increase our cost and it will also require some skilled and
trained employees. Technological conditions in Bangladesh has been favorable for doing such
type of business (S.I.M.S Entertainment). To become successful in this business we need to
hold up the trend and cope up with the change of new technological trends.

 Environmental Factors:
If we consider the acceptancy of gaming business in Sylhet, there is a huge opportunity to grab
a big market. Because there is a craze about gaming among young generation of Sylhet also all
over Bangladesh. There is popular attitude of gaming in the Sylhet region. S.I.M.S
Entertainment as gaming is not hampering any environmental substances. In some cases
government give reward for doing business by not hampering the environment.

 Legal Factors:
There is no exact or specific law established for gaming business in Bangladesh that we may
consider. It is almost likely as the sole proprietorship or partnership business. When it comes
to legal factors of Bangladesh it is quite suitable for doing such business like S.I.M.S
Entertainment.

SWOT analysis of S.I.M.S Entertainment

 STRENGTHS:
 Advantage of being a first mover in Sylhet: The environment and service we will
provide is completely in new this region. As the first mover we have the competitive
advantage and we can do monopoly business before new a competitor arrives.
 Different types of games: We will provide different type of gaming experience to our
customers such as, 3D games, indoor games (football, cricket), LAN gaming,

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 PlayStation gaming paintball shooting etc. It will be very easy for us to grab the market
and attract customers with all these attractive gaming facilities.
 High tech machineries: Again the attraction of customer comes here. A gamer always
wants to experience new things. Our high tech machineries will easily attract and
attained the customers.
 WEAKNESSES:
 Lack of technical knowledge: The use of such type of technical product is very low
across Bangladesh. It is difficult for us to maintain any technical issue. We have to keep
an expertise employee with high salary for that.
 High maintenance cost: Maintenance cost of such machine is comparatively high. So
we have to aware of any technical problem.
 Complex access to machineries: Availability of the modern gaming materials is absent
in Bangladesh. We have to import these machineries form different region. That will
increase the overall expenses.
 OPPORTUNITIES:
 Expansion of venture in different locations: Gaming zone like S.I.M.S Entertainment
is not available in other region except Dhaka. So we can easily expand the business,
fulfill the increasing demand and be the market leader.
 High demand among youths: Demand of game is increasing, since it had been came
to the world of recreation. We can fulfill the demand with our latest technology. These
increasing demand of youth will help us to develop our profit margin.
 Increasing rate of use of social medial: Use of social media among young generation
is very high. This made easy for us to promote the service and features to the customers.
 THREATS:
 Political Instability: Political situation of Bangladesh is very unstable. Strike,
insecurity of wealth are the major problem that can hamper the business.
 Rapid Change in Technology: World of technology is getting develop very
frequently. With this development trend we have to adopt the trend and go with flow if
we want to sustain in the market. This will definitely increase the overall expense of
the business.
 New Competitors: Arriving of new competitors in such profitable business is very
easy. Arriving of a new competitor may affect our pricing strategy and also overall
business strategy.

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 Marketing Strategy of S.I.M.S Entertainment
Market Segmentation
Based on the different characteristics of target market we can divide our market in three small
groups.

 Demographic Segmentation:

We are basically targeting the youth community with the age of 12 to 30 both male and female.
Students are more likely to fond of playing different type of games. So our target group is
student who gets a minimum amount of money from their parents also the young people who
have mid-level to upper-level earnings.

Age: 12-30 years.

Gender: No differentiation.

Occupation: Students, New Job Holders.

 Geographic Segmentation:

This new venture is basically for the customer of Sylhet region. We are providing gaming
facilities only for the people of Sylhet. In future we might expand our business. But currently
we are segmenting our customer on geographic location based.

Region: Sylhet

 Psychographic Segmentation:

We are also targeting the youths who have great interest on gaming and they like gaming as
their hobby. Even there are some people who take gaming as a profession. Based on all that
variable we are doing psychographic segmentation.

Interest: Gaming

Hobby: Playing football cricket and games.

Activities: Professional and non-professional gamers.

Target Market
The success of a product or service in a marketplace is possible with a proper target market. So
that we must have a clear definition of their target market in order to know our customer better
and serve them the best.

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  S.I.M.S Entertainment target market basically depends on its different gaming services.
That means we are targeting different customers with different gaming facilities.
 3D gaming is for age group of 12 to 20 and for the student who are belongs to middle
to upper level income family.
 Indoor gaming is for the age group of 15-25 and for the students who are belongs to
lower-middle to upper-middle level.
 PlayStation is for those youths whose age group is 15-30 and who had a great hype of
playing FIFA and War games.
 Paintball Shooting is for age group of 15-30 both students and working class people
who want a new place or new feature for recreation.
 LAN gaming is especially for the gamers of Sylhet region.

Positioning
We will position about our venture by sponsoring in different gaming events. Also we will
organize different gaming competition to make our venture renowned across the country. On
the other hand we will provide dedicated customer service with high tech machineries to
position into the customer mind. We want to establish a mindset among the youth that the era
of digital recreation in Bangladesh has just began.

Marketing Mix (4P’s)

Product: Basically we are not selling any product rather we are selling service. We will
provide game play service to our customer. Our services include different types gaming
facilities. These are given below:

 Paint Ball Shooting (Battle yard)

 3D Games
 Bike and Car racing (Multiplayer)
 PlayStation 4 (FIFA, PES, Call of Duty etc.)
 Indoor Games (Cricket and Football)
 Soccer Table
 LAN Games

Price: Basically, we are following two types of pricing strategy. For some categories, we are
following price skimming and other for price penetration.

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  Price Skimming- We are following price skimming strategy for those categories which
are mainly unavailable in Sylhet, also which include high technology, graphics and
environment. So that we can charge more from our customer and eventually we will
reduce the price.
 Paint Ball Shooting (Battle yard)
 3D Games
 Bike and Car racing (Multiplayer)
 Price Penetration- We are following price penetration strategy for those categories
which are available in some places of Sylhet, and customer can use substitute for
those. So that we can grab the market share in a very short period of time.
 PlayStation 4 (FIFA, PES, Call of Duty etc.)
 Indoor Games (Cricket and Football)
 Soccer Table
 LAN Games

Place: Though we are targeting the youths from upper and lower-middle income group, who
have interest in gaming. That’s why we have chosen Sylhet city to establish our venture. We
will establish S.I.M.S Entertainment in the 4th floor of Arcadia tower, near Housing Estate.
This place is very lucrative and famous for the youths because different types of brands, has
already established their showroom there. Also, the well renowned grocery shop SHAWPNO
situated there. And the population density around the place is also high. So, it is a great
opportunity for us to attract the customer.

Promotion: A successful business like gaming zone definitely depends on proper

promotional strategy. We will follow digital marketing, direct marketing, advertisement,
public relation.

 Digital Marketing: Social Media (Facebook, YouTube), Website

 Direct Marketing: Provide brochures to educational institute (School, college,
university)
 Advertisement: Poster, newspaper advertisement
 Public Relation: Feedback of customers, encouraging gamers by organizing gaming
events.

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 Business Canvas Model of S.I.M.S Entertainment

1. Customer Segmentation – S.I.M.S Entertainment will provide value for the youths
who are interested in gaming and indoor sports. Basically, the people who are looking
forward to spend their leisure time with full of fun and excitement.
 Mass Marketing – We are going to do mass marketing for the students who are
interested in gaming and sports. We are going to offer indoor gaming and
paintball shooting with a very low price. So that, the students can easily afford
that. Mainly, we are going to encourage the students of aged between 10-25
years to enjoy the indoor football, cricket and paintball shooting.
 Niche Marketing – We are going to do niche marketing for the LAN gaming
and 3D gaming because we will provide high tech graphics gaming experience
and high speed internet facilities in those two sector with standard modern
machineries. The decoration will be very posh with beautiful and attractive LED
lights with a live gaming experience. In that sense we want to attract specially
gamers who often spend money for better gaming experience.
2. Value Proposition – Providing gaming and indoor sports facilities is the core value of
S.I.M.S Entertainment. We are going to give the youth a place of digital recreation and
solving the problem of spending leisure time by doing exciting stuffs. Such as we are
going to provide paintball shooting which is completely in new in whole Bangladesh,
3D gaming with high tech graphics quality. On the hand giving them a life time
experience of big screen gaming and have fun with friends and family in a competitive
environment.
 Performance – We are going to hire well trained employees for our 3D gaming
sector for showcasing the machine to the customers. Also we are going to hire
two bouncer who will be available for the internal security of the arena.
Moreover, we will provide equipment for cricket and football so that our
customer will not have to carry them from home.
 Newness – If we talk about newness we all know that S.I.M.S Entertainment
gaming zone is completely new in Bangladesh, specifically in Sylhet region.
This venture will be introduce to the young generation of the society to connect
them with digital recreation.

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  Design – We are going to design S.I.M.S Entertainment by keeping in mind that
the arena should be like a place that we cannot find it anywhere else. We will
make feel the customer that they are out of the world. Also we will provide
proper security both internally and externally to our customers. Also we will
design a friendly job environment for our employees so that they can serve their
best to the customer.
 Convenience – To provide booking information we are going to open a website
for this venture so that our customer can book from their place via internet. Also
they can find any information to the official Facebook page of S.I.M.S
Entertainment. On the other hand the gaming zone will be established in a place
where every people of Sylhet can reach very easily with a very cheap rate.

3. Channels – We are going to make two type of channels for our customer so that we
can easily reach them also they could reach us.
 Sales Force – S.I.M.S Entertainment will hire a sales force who will distributes
leaflets outside of schools, colleges and universities and communicate with the
customer for giving guidance and promote about the venture.
 Web Sales – According to a report of Dhaka Tribune, nearly half of the
population of Bangladesh now use internet (Ahmed, 2018). We will open an
official Facebook page and website to reach to our target audience. Also we are
going to make promo videos of our venture to attract customer and to let them
know about the value we are proving to them.

People now a days want to fulfill their need by sitting at their home. So that service oriented
businesses are increasing. That is why we will reach our target customer through web sales
service of online booking. The trend of web based service and sales are more efficient and
effective now a days. We can easily reach to our customer and grab the market by using web
sales.

4. Customer Relations – Our main focus will how we can give the best service to our
customer and attain them for life time and attract new ones. By providing maximum
priority and comfort we will build up a good relationship with customer. Not only
giving priority our goal will be taking feedback from them for further development.

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  Personal Assistance – There will be one of us present every time to assist our
customers. On the other hand we will hire employees who will assist them in
the different sector of gaming.
 Internet – We will provide as much as service to our customer via our social
media site and website. We will provide every information about gaming and
pricing via internet.

5. Revenue Streams – Cash must be generated from each customer segment especially
from fitness sector to keep the organization running smoothly. We take cash in
exchange of the value we are providing which is a safe and comfortable place for the
sport’s activities and fitness of women.

 Usage fee – We are going take usage fee on hourly basis for each gaming
categories. For different sector of gaming customer have to pay different
amount of money.
 Asset Sales – this is only for the machineries which we have to change with new
ones. Technology is thing that change very rapidly and in order to sustain in the
business we have to adopt new technology. So due to adopting new technology
we can replace the old model with new ones by selling the old ones.

6. Key Resources –Key resource work behind the success of a venture. The key resources
of S.I.M.S Entertainment are given below –

 Physical Infrastructure – S.I.M.S Entertainment physical infrastructure will be

very attractive to the customer with a huge area. We will provide a place that
had been seen nowhere in Bangladesh before. Indoor gaming will be fully
attached with artificial grass carpet for the customer comfort. The game zone
will be design with high tech LED lights with graphical design.
 Location – Arcadia tower is one of the most renowned places for every person
in Sylhet division. It is situated at Housing Estate area of Sylhet city. It is also
a renowned commercial area with high population density which will help us to
gain more customer.
 Modern equipment – Our modern equipment is one of our key resources. The
success and sustainability full demand on this. Based on the modern equipment
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 we are going to attract customer and attain them by developing the current
equipment or replacing them with new ones.
7. Key Activities – To ensure highest priority to the customer we need to perform some
key activities. S.I.M.S Entertainment key activities are given below.
 Service provider – We will provide gaming and indoor gaming services to our
consumers. To grab different customer we are coming with difrrent type of
gaming facilities. Such as, Paintball shooting, indoor (football, cricket), 3D
gaming, PlayStation 4, LAN gaming etc.
 Problem-solver – Being a problem solver, we are solving the youths demand for
recreation and excitement in their leisure times also we are contributing to
employment.
 Sales – The cafeteria sales healthy food items. Therefore, our major activity is
to bring fresh ingredients and cook the food by maintaining the hygiene.
 Network – We are going to build the network among the youths of Sylhet who
are interested in gaming. We are going to create a bonding among themselves
through a competitive environment.

8. Key Partnerships –Key partners help us to run the business more effectively and
successfully. Some of the key partners of S.I.M.S Entertainment are given –
 Bandwidth Company: We will going to establish a partnership with internet
service provider. So that we can get highest internet speed as per required for
gaming. This partnership will help us both. Such as we can promote about their
speed and the can provide great service with even better internet speed.
 Partnership with suppliers – We will form partnership with our suppliers who
will provide us equipment and machineries. So that we could buy machineries
in cheaper rate in future.
 Investors – This venture is all about good investment so that we must need
investors. So that our investors will provide financial support to our venture.

9. Cost Structure – To run a business with highest profit margin we must have to
concentrate to our cost.
 Fixed Cost – we will incur some fixed cost for this venture. Such as, rental fees,
employees’ salary, insurance, utility bills etc.

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  Variable Cost – we will incur some fixed cost for this venture. Such as,
advertising expenses, gaming events, day labor price etc.

Financial Analysis

Forecasted (First Year) Income Statement

S.I.M.S Entertainment
Income Statement
For the year ended 31st -------------- 20-----

Account Title Taka Taka

Revenue:
Paint Ball 7,20,000
Indoor Games 2,16,000
3D Games 6,00,000
Racing Games (Bike & Car) 36,00,000
LAN Games 6,00,000
Soccer Table 1,08,000
Interest and other revenue:
Insurance premium 63,000
Total Revenue / Gross Profit 59,07,000
(Less) Expenses:
Salary expense 6,60,000
Owners Salary 3,00,000
Daily Allowance 75,000
Utility expenses (30,000x12) 3,60,000
Rent of the building 12,00,000
Trade License expense 6,000
Advertising expense 20,000
Insurance Expense 60,000
Other expenses 1,00,000
Total Expenses 27,81,000
Net Profit before Tax 31,26,000
(Less) Corporate Tax 25% 7,81,500
Net Profit after Tax 23,44,500

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 Forecasted (First Year) Balance Sheet
S.I.M.S Entertainment
Balance Sheet
As on 31st --------- 20------

Taka Taka Taka

Assets:
Current Assets:
Cash and Bank balance 23,44,500
Total Current Asset 23,44,500
Fixed Asset:
Machineries & Equipment 30,00,000
Leasehold building 10,00,000
Total Fixed Asset 40,00,000
Total Assets 63,44,500
Liabilities and Owners Equity:
Owners’ Equity:
Capital 40,00,000
(Add) Net Profit 23,44,500
Total Liabilities and Owners Equity 63,44,500
Ratio Analysis:

Return on Investment (ROI): 23,44,500 / 40,00,000 x 100 = 58.29%

Return on Asset (ROA): 23,44,500 / 63,31,750 = 0.3682

Break-even Analysis:

If S.I.M.S Entertainment wants to get back their investment within 1 and half year, then their
yearly sales has to be…….

Investment 40,00,000

+ Expenses (27,81,000 / 12)*18 = 41,71,500

Total in 18 month---------------------= 81,71,500

In 1 year BEP = (81,71,500/18)*12 = 54,47,667

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That means, S.I.M.S Entertainment should at least have to provide the service of Tk. 5,61,251
in order to get back the investment within 1 year without any profit where income=expense.

Forecasted Financial Projection (3 years) for S.I.M.S Entertainment:

Description Basis 2018 2019 2020

Number of Employees 10 10 12 15
Salary of Employees 55,000 6,60,000 7,92,000 9,90,000
Trade License 6,000 6,000 500 500
Owners Salary 25,000 3,00,000 3,00,000 3,00,000
Insurance 5,000 60,000 60,000 60,000
Primary Cost

Website hosting and 15,000 15,000 12,000 12,000

maintenance
Expenditure

Rent of the building 1,00,000 12,00,000 12,00,000 12,00,000

Security of building 10,00,000 10,00,000
Machineries and Equipment 25,00,000 25,00,000
Decoration, Game consoles 5,00,000 5,00,000 2,00,000 2,00,000
and other equipment
Advertising and promotion 2,000 24,000 24,000 24,000
Secondary

cost
Cost

Phone and Internet bills 10,000 1,20,000 1,20,000 1,20,000

Miscellaneous expenses 15,000 1,80,000 1,80,000 1,80,000
Total Expenditure 27,11,000 27,34,500 29,32,500

Service Revenue 4,87,000 58,44,000 70,00,000 90,00,000

Income

Net profit before tax 31,33,000 45,66,000 63,67,500

Corporate Tax (25%) 7,83,250 11,41,500 15,91,875
Net Profit after Tax 23,49,750 34,24,500 47,75,625
Financial
Position

Total Asset 40,00,000 53,44,500 74,24,500 87,75,625

Owners’ Equity 40,00,000 53,44,500 74,24,500 87,75,625
Total Investment required 40,00,000

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 CONCLUSION
S.I.M.S Entertainment will be one of the most successful businesses in the country in a very
short period of time if we follow the given strategies accurately and with full of dedication.
The demand of recreation and gaming is increasing among people specially the youths. We
will capitalize this huge opportunity and we will make people life better full of fun and exciting
by proving them a place where they can feel free from all other stress. We will fulfill the
demand of this generation people who loves to play games and seeking for new type of
recreation. If we can keep the service in this manner we can gain a great market share in very
short period of time.

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 REFERENCES

Ahmed, K. A. (Ed.). (2018, March 19). Global Digital Report: 49% Bangladeshis use internet.
Retrieved May 13, 2018, from https://www.dhakatribune.com/bangladesh/2018/03/19/global-
digital-report-49-bangladeshis-use-internet/

Chan, J. (2018, May 14). The 4-Step Guide to Building A Killer Marketing Strategy. Retrieved
May 14, 2018, from https://foundr.com/marketing-strategy/

Hisrich, R. D., Peters, M. P., & Shepherd, D. A. (2016). Entrepreneurship (9th ed.). New York:
McGraw-Hill Education. doi: ISBN 978-007-132631

Friesner, T. (n.d.). Pricing Strategies. Retrieved May 14, 2018, from

http://www.marketingteacher.com/pricing-strategies/

PESTLE Analysis of Adidas. (2017, May 29). Retrieved from http://pestleanalysis.com/pestle-

analysis-adidas/

Porter's Five Forces: Understanding Competitive Forces to Maximize Profitability. (n.d.).

Retrieved May 14, 2018, from https://www.mindtools.com/pages/article/newTMC_08.htm

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 APPENDIX (A)

Fig: S.I.M.S Entertainment Brochure

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 APPENDIX (B)

Fig: S.I.M.S Entertainment Website

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 APPENDIX (C)
Price of Different Gaming

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