The Knowledge & Dreams Learning Center - Example

Strategic Business Plan for The Knowledge & Dreams Learning Center Tammie Taylor BUS/731 Dr. Jean Perlman 01/17/13 0 Company (executive summary) 1.1 Mission 1.2 Vision 1.3 Purpose 1.4 Future Growth vision 1.4.1 Distribution process 1.4.2 Quality systems 1.5 Future Vision 1.5.1 Capacity 1.5.2 Process 1.5.3 Labor 1.6 Employee Satisfaction Research 1.6.1 Facilities 1.6.2 Inventories 1.6.3 Distribution Process 1.6.4 Quality Systems 2.0 Industry Analysis 3.0 Financial Structure 3.1 Current cost of capital 3.1.1 Capital structure 3.1.2 Cost associated with capital structure 4.0 Marketing Plan Customer Analysis Direct, alternative and potential competition Marketing Mix decision Promotion Pricing Customer Analysis Distribution Selling Marketing approach Marketing strategy Channel of distribution Leadership, communication and training, and legal, ethical, and information technology issues into the marketing plan. Budget 5.0 Referenes 6.0 A: Organizational Chart–Current State: 7.0 B. Balance Sheet Basic Template 7.1 Current date: 7.2 Future Dates: 8.0 C: Income Statement Basic Template: 8.1 Marketing current budget revenues: 8.2 Operations current budget expenses: 8.3 Administrative and cost of capital current budget expenses: 9.0 D. Forecasted Budgets: 9.1 Marketing Current Budget (Revenues): 9.2 Operations Current Budget (Expenses): 9.3 Administrative and Cost of Capital Current Budget (Expenses): 10.0 E: DuPont Ratios 10.1 5-year historical analysis: 10.2 5-year forecasted analysis: Executive Summary Knowledge and Dreams learning center is a nonprofit agency providing tutoring programs for youth 5 through 17 in the Memphis and Mississippi area. The program will form partnerships with local schools, companies and professionals. Knowledge and Dreams goals are to enhance the information taught in schools while developing a child’s dreams to awaken hope in every child for the future. Only through interactions with individuals working in the fields in which each child is interested can we encourage and advise each student on what is necessary in school and in life to achieve their goals. Through early interaction we can gain the trust of the students, families and volunteers so to work together to defuse any destructive habits. While working with those individuals in their fields of interest these students will become protégés of these individuals for several years, eventually becoming interns as they get older and closer to their completing course work in that field. Knowledge and Dreams is a program that is in direct response to the growing number of young people falling through the cracks in school and failing to plan for their future. The goal of this program is to offer tutoring of course study and dream development and internship to the youth of the intercity. This program will entangle education before and after adulthood providing professional experience in both areas. The focus is different for every age group although the message is the same, to empower each of them with the knowledge needed to make better decisions for their future. Knowledge and Dreams will focus primarily on intercity youth of all ages. According to the National dropout prevention center “There are a multitude of youth programs available, but many are inaccessible to inner-city and rural youth (2012, para 2).” Knowledge and Dreams will partner a professional to every group of five who is interested in his/her field of study. These partnerships will last the length of the Childs stay in the program. This program will also provide tutors for these students for each grade level and subject where help is needed. During that time weekly planned activities to strengthen the relationship between tutor, professional and child will improve the young persons confidence and hopefulness.  Professionals will receive continuous training throughout the year and will participate in monthly meeting to report the young persons progress. Mission Knowledge and Dreams is a nonprofit agency strives to provide tutoring programs for youth 5 through 17 in the Memphis and Mississippi area. The program will form partnerships with local schools, companies and professionals. Knowledge and Dreams goals are to enhance the information taught in schools while developing a child’s dreams to awaken hope in every child for the future. Knowledge and Dreams takes pride in helping a child plan for their futures. This program provides tutors for each stage in a child’s educational development while also providing a professional to work Vision Knowledge and Dreams learning center will be one of the top educational centers in the nation because of the innovative ways we teach. Our volunteers will increase as will the number of students interested in our program. This increase will happen at word of mouth supports the work that is beings done at the center in a positive way. Purpose In the next three years Knowledge and Dreams will double in size and revenue as it grows to one of the top tutoring and professional developmental centers in the mid south. This organization is first of its kind and will bring exciting and new innovations to the youth. Services Knowledge and Dreams is a program that is in direct response to the growing number of young people falling through the cracks in school and failing to plan for their future. The goal of this program is to offer tutoring of course study and dream development and internship to the youth of the intercity. The long term goal of Knowledge and Dreams is to empower the young person to break the cycle’s personal disappointment and to reach for their dreams. Knowledge and Dreams has two mentoring programs. They are as follows: I have the Power: I have the power is a program that is geared towards all members of the Knowledge and Dreams learning center. This program tests our children to get a grasp of their level of understanding. These tests cover all subjects at all grade levels. After testing is complete the volunteer tutors can place the children in groups based on the level they are currently. This organization doesn’t label children by naming each group identifying the different levels. If everyone is on the same level no one would spend time looking back or feel pressure to catch up they can concentrate on where they are. I have the power program states “I have the power to change my destination, I have the power to achieve my dreams and I have the power to be who I am. Claiming my future: Claiming my future is a type of work study program. This program gives each youth a questionnaire to determine their likes, dislikes and interests. Based on the youth’s answers they are given a secondary questionnaire that lists several careers that fit their descriptions from the initial questionnaire. The jobs or careers chosen by the youth’s determine what volunteer they will be placed with. Once placed the youths will spend their weekends with their group leaders in groups of five. These youths will be called protégés as they learn the job or career they feel most interested in. The youths can change groups as many times as needed to find the one that most fit them. This program is developed to encourage future education and career enjoyment. We believe here at the Knowledge and Dreams Learning Center if you teach a child how to do what they love, you have people who love what they do. If people love what they do then they don’t really work, so the work is never hard. Industry Analysis In a comprehensive data released by US Department of Education for period 1972 to 2009 it showed that there is staggering number of students that is failing school for a number of reasons that range from dislike to school to inability to cope with the rigor of academic requirements (National Center for Education Statistics, 2011). This figure reaches up to 8.1%. Clearly, there is a disconnect between the existing educational system and capability of students considering that there is an average of 8.1% dropout and failing rate in the country and school does not seem appealing to students. Knowledge and Dreams will serve as an intervention institution for young students age 5 to 17 in in the Memphis and Mississippi. Its initial market is the average dropout and failing rate in formal schools because they are the ones who obviously need help hoping that numbers will be reduced in Knowledge and Dreams area of influence. Reduction or elimination of failing students does not mean that Knowledge and Dreams will be put out of business. Once these failing students are helped to avoid failing in school, the business can move forward in aiming to enable students do better in school and life in general. This type of market is bigger because it includes a larger population of students. Knowledge and Dreams however will initially focus on the students that immediately need help. Cost of capital Capital structure For Knowledge and Dreams to be incorporated, an initial capital from its incorporators will be needed. The initial capital that will serve as seed money will be raised from the contribution of its partners. The additional capitalization that will be needed in the future for keeping the business a going concern and expansion will be raised from the loans, additional contribution of existing shareholders, infusion of capitals from potential investors, agreements from other resources, donations and revenues realized from initial operation. Knowledge and Dreams will be a Limited Liability Corporation (LLC) where its incorporators, shareholders and investors will only be accountable up to the amount that they invested. Thus, incorporators, shareholders and investors will not be liable for any obligations and debts in the event that liabilities exceeded capitalization. The additional funds that may be needed for its operation and expansion will be determined by the finance department and shall be secured in the form of additional contributions, loans, infusion of capitals from potential investors, agreements from other resources, donations and revenues realized from initial operation. Initial Source of Capital Source Individual Contribution Personal savings, personal loan Source of Capital for Expansion/operation Loans Banks, financial institution, personal loans additional contributions Personal savings infusion of capitals from potential investors Potential investors Agreements from other resources Educational grants and funding from funding agencies Donations Social and philanthropist clubs like Shriners, Rotary and individuals Revenues Income from operation of the company Cost associated with capital structure The table below is the cost associated in setting up the business. The initial capital that will be raised will be used in the activity in following table to realize Knowledge and Dreams and make it a going concern. It will begin with licensing, hiring of employees up to acquisition of fixtures and equipment to paying overheads to make the business a going concern. Initial Capital Structure Cost Particulars Licensing Incorporating the business at SEC, securing licenses from regulatory agencies Building Renting, purchasing the building where Knowledge and Dreams will be operating as a business Furniture and fixtures Tables, chairs and other furniture that will be used in the operation of Knowledge and dreams Employees Hiring, training and coaching Computers, presentation tools Equipment Laptops, computers, presentation tools, educational materials for tutorials Overhead expense Electricity, water and other utility expense Marketing expense Licensing, Other expenses Unanticipated expenses Marketing Plan Customer Analysis The types of customer that Knowledge and Dreams cater are those students who need a specialized approach in coping with the demands of schools. Their reason for failing formal school varies and could range for a myriad of reason and do not necessarily means that they are slow learners. Knowledge and Dreams operates on a mindset that each student is capable in coping the demands of school and life in general. Some students may just need an intervention or specialized approach to cope. Knowledge and Dreams does this by first analyzing the needs of the student through a battery of assessment to determine the best intervention approach for the student. The customer will be divided into two categories. The first and most obvious customers are the students who are cranking or failing in school because they are the direct recipient of the intervention program. They are however are still in their minority age (age 5-17) and does not yet have the capacity to finance the cost of the program should they avail Knowledge and Dreams service. In addition, these second type of customer can initiate the enrollment of the target market into the program even if the target market is unaware how Knowledge and Dreams can help them. Such, the other type of customer are the decision makers and financiers of the programs who are the parents and/or guardians of the target market. Direct, alternative and potential competition Knowledge and Dreams has three types of competitors, direct, alternative and potential competitors (Kotler and Keller, 2006. Direct competitors are those similar organizations that offer the same services aiming at the same market with Knowledge and Dreams. They are the private tutors, learning centers and other similar entities that offer intervention for failing students. Indirect competitors are those who offer alternative services to address the needs of failing students. They could be online tutorial service (web based), self-help kits and books and other methods offered in the market intended to assist students in their failing school work. Potential competitors are those companies and individuals who may become competitors in the future. Self-help books albeit ineffective in tutoring students to improve their performance in school, could find a way to improve in their contents to rival Knowledge and Dreams in the future. Marketing Mix decision Product Knowledge and Dreams product is its program that is designed to directly respond to the growing number of young people falling through the cracks in school and failing to plan for their future. The goal of this program is to offer tutoring of course study and dream development and internship to the youth of the intercity. The long term goal of Knowledge and Dreams is to empower the young person to break the cycle’s personal disappointment and to reach for their dreams. Knowledge and Dreams as a service differentiates itself from other tutorial services and programs in a manner that its approach and curricula is specifically customized to address the needs of students who are failing school. It is envisioned that when this segment of the market is reduced due to the efficacy of the intervention program of Knowledge and Dreams, it will expand to the much broader market of regular students to help them cope better with school and life in general. Place Knowledge and Dreams will serve as an intervention institution for young students ages 5 to 17 in the Memphis and Mississippi. Its initial market is the average dropout and failing rate in formal schools because they are the ones who obviously need help hoping that numbers will be reduced in Knowledge and Dreams area of influence. Promotion, advertising and public relations Promotion, advertising and public relation is a necessary exercise for any organization intending to penetrate a certain market (Kerin et al., 2009). This is particularly important to Knowledge and Dreams because it is still a start up organization where the market is still unaware of its existence. Hence, it would be necessary for the company to undertake promotional efforts not only to be known among its target market, but also to successfully penetrate the market and earn market share. Marketing Approach Flyers - Flyers is one of the most effective and cost efficient method of reaching Knowledge and Dreams prospective customers. This can be distributed near the vicinity and entrances of schools and universities in Memphis and Misissipi area where its target market are located. Local Radio – Broadcast advertisements are to be used to reach the broader spectrum of the market which includes the parents/guardians of the target market who would be financing the tuition of the students seeking the help of Knowledge and Dreams. This promotional approach will only be done in the initial launching of Knowledge and Dreams as the company is still introducing itself in the market. Local Newpaper Advertisement – is marketing approach to be done on the first phase of launching Knowledge and Dreams as a complement and follow through of the previous marketing implements that was executed (flyers and radio advertisement). This approach is also aimed at parents/guardians who would be making the decision to finance the tutorial needs of Knowledge and Dreams target market. Newspaper is an ideal medium to communicate the details of Knowledge and Dreams intervention program because they can keep the advertisement and reference it when they make the decision to enroll or otherwise. Advertisement in school publication and bulletin boards – Advertising in school publication and bulletin boards is directed towards the target market since there is huge probability that they will be reading their school publication or their peers who could recommend the program to them when they are failing school. This could be the most effective promotional tool in approaching the direct market because the advertisement is aimed directly at them at a location (school) where they may need help at. Advertisement in school publication and bulletin boards however has to be complemented by other promotional implements such as local newspaper advertisement and radio broadcasting to include the decision makers in availing Knowledge and Dreams program to become more effective in expanding the market base. Pricing Survey showed that tutorial services in the Memphis and Mississippi range from $20 to $50 an hour. Knowledge and Dreams will position itself more competitively in terms of pricing by charging its students by the program thus providing them more value for their money. Charging students on a program basis will also ensure the efficacy of the intervention because it will allow continuity of a program until its completion thus achieving its desired effect of helping the students. Marketing strategy Knowledge and Dreams will focus primarily on intercity youth of all ages. According to the National dropout prevention center “There are a multitude of youth programs available, but many are inaccessible to inner-city and rural youth (2012, para 2).” Knowledge and Dreams will capitalize on accessibility by devising creative channels to make the program available and reachable to its target market by focusing on inner-city and rural youths. In addition, the schools that this rural and inner city youths attend will be inundated with promotional implements to make them aware of the existence of Knowledge and Dreams and to impress the ready availability of the program. This increased awareness about Knowledge and Dreams and its ready availability to its target market shall be facilitated by its channels of distribution that would serve as its competitive edge over its competition in addition to its responsive program. Channel of Distribution Channel of distribution is the path or method by which a product or service reaches the customer (Perreault et al., 2011). Unlike tangible products where the commodities had to be made available through a reliable distribution channel, Knowledge and Dreams will instead be made available to its target market through a fixed structure rented out by the company for the students to attend and benefit from the program. The location, availability and other particulars of the program shall be communicated to the target market through the promotional implements employed by Knowledge and Dreams. The channel of distribution in addition to Knowledge and Dreams responsive program shall be used as the company’s competitive edge over competitors by making the program more accessible through the use of the following implements. Setting up mobile classroom – empty rooms, dormitories, house or offices can be rented out on a short period of time when a certain number of students are pooled for a certain program. For example, if Knowledge and Dreams is able to enlist 15 participants in the inner city of Memphis, the company can instead rent a makeshift tutorial center for the purpose of the program where students can readily attend due to its proximity. Rotating tutorial host – after a certain number of students are pooled, it will be proposed among the participants to rotate the venue of the tutorial where they can host the place. In exchange, a discount shall be given to the participants. This set up while tedious, has the advantage of easily facilitating learning because tutorial will be held in location where the participants are very comfortable at. Leadership, communication and training Legal, ethical, and information technology issues Human resources is the most important asset of any organization (Dreher and Dougherty, 2001). Corollary, Knowledge and Dreams shall put primacy on its human resource as its greatest asset particularly in its industry because they are the ones that will provide business for the company. The delivery of the program and interaction with the market are done by the tutors. Thus it is imperative that the personnel should not only be motivated, but also knowledgeable about the subject matter they are teaching and skilled in the methodology of Knowledge and Dreams intervention program. Motivation is facilitated through a good leadership where followers can identify with the leader. It is critical therefore that Knowledge and Dreams management shall exercise good leadership that will not only motivate employees but also bring about the best among them. This kind of leadership is called “transformational leadership” which inspires and develops others to become a leader as well. This is the type of leadership that goes beyond the short term and focuses on the higher needs of its follower. It does not coerce to solicit following but rather induce its peers and subordinates to identify and relate with the leader for being a good role model that they would like to emulate (Mandell and Pherwani, 2003). This kind of leadership is not only applicable within the organization to become competitive but also on the students that Knowledge and Dreams intend to help by setting them examples that they would like to emulate to become better. Part of keeping a motivated workforce is to keep an open communication channel between management and its employees whereby management can communicate its vision and mission whereby the employees can provide feedback on how best to achieve it. In addition, training and retooling shall be perpetually conducted to keep the tutors updated on the latest techniques of academic intervention to make their tutorials more effective. Information technology will also be used to reinforce the teaching methods to make the intervention more effective. The emphasis on motivating and keeping employees abreast will also be part of the ethical practice of Knowledge and Dreams of putting importance to its people and to genuinely intend to help failing students to cope with school before the profit motive. Budget Budget for the Implementation of Marketing Plan               Promotion     Local Newspaper 10,000.00   School publication and bulletin board 2,500.00   Radio broadcast 7,500.00   Flyers 1,000.00 21,000.00       Human resource     Salary 30,000.00   Training 15,000.00   Equipment 5,000.00 50,000.00       Administrative expense     Supplies 500.00   Overhead 2,500.00   Rent 5,000.00   Maintenance 500.00 8,500.00       Utility expense 1,000.00   other expense       2,000.00 3,000.00 Total           82,500.00 References George Dreher, Thomas W. Dougherty  (2001). Human Resource Strategy, 1e. The McGraw-Hill Companies Mandell, Barbara and Pherwani (2003). RELATIONSHIP BETWEEN EMOTIONAL INTELLIGENCE AND TRANSFORMATIONAL LEADERSHIP STYLE: A GENDER COMPARISON. Journal of Business and Psychology. 17(3): 387-404 Philip Kotler, Kevin Lane Keller (2006). Marketing Management, 12e. Prentice-Hall. Roger A. Kerin, Steven W. Hartley, William Rudelius (2009). Chapter 19: Advertising, Sales Promotion, and Public Relations. McGraw-Hill. William D. Perreault, Ph.D., Joseph P. Cannon, Ph.D., E. Jerome McCarthy, Ph.D. (2011). Basic Marketing. A Marketing Strategy Planning Approach, 18 Edition. McGraw-Hill Company National Center for Education Statistics (2011). Trends in Highh School Dropout and Completi n Rates in the United States: 1972–2009 . Retrieved January 27, 2013 from http://www.dropoutprevention.org/sites/default/files/2012-Trends_in_Dropout.pdf National dropout prevention center (2012). After – School Opportunities. Retrieved January 20, 2013 from http://www.dropoutprevention.org/effective-strategies/after- school-opportunities. Appendix Future state org- Chats Read More