Assessment Information
Subject Code: MAN303
Subject Name: Entrepreneurship and Innovation
Assessment Title: Assessment 3: Business Plan and ‘Pitch’
Weighting: 40%
Total Marks: 40
Word Limit: 1500 words
Submission: Via Turnitin
Due Date Week 12 (Business pitch in class); Week 13 (Business Plan)
This Assessment Task will address the following Learning Outcomes:
LO2: Develop a comprehensive and well-structured business plan for a new venture.
LO3: Construct a persuasive business plan to potential investors or to internal stakeholders and effectively answer probing questions on the substance of the plan
LO4: Analyse which business metrics matter and how you expect to perform according to them.
Assessment Description
You are required to read the following transcript between the three owners and investors and prepare a Business Plan based on the information provided. You will also be required to:
• Come up with a name for the game and a description
• Conduct additional market research as mentioned in the transcript (e.g., statistics, marketing strategies, etc.)
• Investigate the costs of co-working spaces for the office
• Submit a brief 3-year cash flow projection for investors.
A template business plan is provided on the portal to you to use if you wish. You are not required to use the template business plan.
Transcript from the Meeting
Spirited Games Pty Ltd
Date: 8 February 2019
Attendees: Michael Smith (Director)
Alecia Prior (Director)
Andrew Bullock (Director)
_____________________________________________________________________________
Michael: Welcome, Alecia and Andrew, and thank you both for coming. Today I want to discuss a new game for Spirited Games Pty Ltd. I propose we investigate doing a capital raise of $250,000 which will assist in funding our first Virtual Reality Football (soccer) Mobile Application Game. Aside from still coming up with the name for the game, is there anything that either of you wish to say at the outset before we begin our discussion?
Alecia: Thanks Michael. As a former partner for KPMG where I advised tech-based businesses for seven years, I cannot recall seeing an opportunity as promising as this. I think this is an excellent opportunity to position this company to enjoy the lucrative gaming market. Mobile gaming continues to rise with the market value expected to reach around 74.4 billion in 2019. The eSports market is also on the rise and is expected to reach USD 2,174.8 million by 2023, at a CAGR of 18.61% between 2018 and 2023.
Michael: Excellent points. Can I ask you Andrew why you believe this opportunity has so much promise?
Andrew: Thanks Michael. I agree with Alecia. Being a former professional athlete and coach in football and previous board member of FIFA, I’ve seen the sport gain serious interest internationally for both men and women. According to Nielsen’s World Football Report, soccer is the world’s most popular sport and still growing. To make a VR game in the sport would be cutting-edge and I believe connect more people to the sport.
Michael: That all sounds promising. We will need to have more market research for the pitch and business plan if we are to secure the funding. Andrew, will you be able to assist on that?
Andrew: Sure.
Alecia: And I’d like to add that if we commit to providing cutting edge gaming solutions and opportunities in niche markets at competitive prices to our customers and even B2B client, we will be able to capture a good share of the market.
Michael: Even as a start-up company?
Alecia: Yes, even as a start-up.
Michael: I have to say I agree with both of you and I’m also excited about this opportunity. Being a sport enthusiast all my life as well as a techie, I can honestly say that I have been amazed at the popularity of esports. It is also interesting to observe, from my own experience, that some of the tech people
are becoming interested in sport due to technology. This is also true of the sports people becoming interested in playing sport via tech. Mind you this is all anecdotal, so I don’t have any statistical proof to back it up.
Alecia: Can you tell us more about your vision for the business expansion please Michael?
Michael: No problem. We develop an image and reputation for quality and innovative gaming solutions at competitive prices. Our business will continue to convey this image to its two market segments — the gaming enthusiast and the commercial client who wants to ‘gamify’ their business or industry. It is becoming a very competitive industry but I believe if we concentrate on the popular sports first and really become known for our expertise in the area, we can capitalise on our networks.
Alecia: Excellent. Andrew, how do think we can to promote and secure sales?
Andrew: Primarily with social media marketing to our consumer market and maybe through some niche magazine advertising. Probably one of the best ways to reach the B2B market is through trade shows and some social media.
Michael: That is a good start, but we will need to be more specific to the potential investors. Marketing is key to any successful business.
Where should we have our office? Until now, we have used Andrew’s home office for the three of us but will need more room as we expand.
Alecia, you also have direct experience with hiring, training and directing operations in technology companies. Do you have any thoughts on office location?
Alecia: There are a couple of options with the co-working spaces emerging nearby such as WeWork and Wotso – to name a few. I will check out their rates and any others in the city that I think will be within the budget.
Michael: How about staff?
Alecia: We will initially employ two new programmers as well a part-time social media person.
Michael: Sounds great, Alecia. How about the numbers? Firstly, how are we planning to spend the $250,000? We need to justify that to the investors.
Alecia: On top of the $30,000 each of us have invested so far to get a beta-version of the game, we’ve budgeted $165,000 for two new programmers, $45,000 for marketing and the remaining $50,000 for working capital. There is still $40K in the bank from our initial $90K which can easily cover the part-time social media person.
Michael: What are our operating expenses?
Alecia: Salaries and wages will be about $240,000, our consulting/directors’ fees will be $75k each, $45,000 on marketing / promotion, $24,000 on offices, and $50,000 on various operating expenses.
Michael: Sounds good. What about our projections, Andrew?
Andrew: The first year we believe our revenue will stay the same through our current consulting at approximately $350,000. The second year I see that we could get about $500k in gaming sales through aggressive marketing as well as 30% increase in our consulting income. The third year I see a 50% increase in overall revenue from both our gaming sales and consulting.
Michael: Well this all sounds like enough information to formulate a business plan and a pitch to investors. Let’s aim to have a draft business plan by next week and then having another meeting.
Alecia: Thank you, Michael.
Andrew: Thank you, Michael.
Grading Scale
This assessment will be marked using the attached rubric.
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Criteria F (Fail)
0%-49% P (Pass) 50%-64% CR (Credit) 65%-74% D (Distinction)
75% - 84%
HD (High Distinction)
85%-100%
Mark
ASSESSMENT CONTENT 32
Business Plan
Introduction/Overview Introduction/Overview fails to canvass relevant information from meeting minutes including breakdown of how funds will be used and general description of key personnel. Reasonable treatment of Introduction/Overview canvassing relevant information from meeting minutes including breakdown of how funds will be used and general description of key personnel Inclusive treatment of Introduction/Overview canvassing relevant information from meeting minutes including breakdown of how funds will be used and general description of key personnel In depth treatment of Introduction/Overview canvassing relevant information from meeting minutes including breakdown of how funds will be used and general description of key personnel Extensive treatment of Introduction/Overview canvassing relevant information from meeting minutes including breakdown of how funds will be used and general description of key personnel / 4
Business Plan Marketing Plan Few specific market details identified and described.
Customer and competitor details not outlined. Understanding of marketing plan purpose not demonstrated. Market details sufficiently identified and described.
Customer and competitor details sufficiently outlined.
Demonstration of basic level understanding of marketing plan purpose. Market details broadly identified and described. Customer and competitor details broadly outlined. Demonstration of intermediate level understanding of marketing plan purpose. Market details well identified and described. Customer and competitor details well outlined. Demonstration of high level understanding of marketing plan purpose. Market details comprehensively identified and described.
Customer and competitor details comprehensively outlined. Demonstration of advanced level understanding of marketing plan purpose. /7
Business Plan Operations Plan Few specific operations details identified and described. Plant, processes, and people details not outlined. Understanding of operations plan purpose not demonstrated. Operations details sufficiently identified and described. Plant, processes, and people details sufficiently outlined.
Demonstration of basic level understanding of operations plan purpose. Operations details broadly identified and described. Plant, processes, and people details broadly outlined. Demonstration of intermediate level understanding of operations plan purpose. Operations details well identified and described. Plant, processes, and people details well outlined. Demonstration of high level understanding of operations plan purpose Operations details
comprehensively identified and described. Plant, processes, and people details comprehensively outlined. Demonstration of advanced level understanding of operations plan purpose. /7
Business Plan Financial Plan Few specific financial details identified and described. Understanding of financial plan purpose not demonstrated.
Financial details sufficiently identified and described. Demonstration of basic level understanding of financial plan purpose. Financial details broadly identified and described. Demonstration of intermediate level understanding of financial plan purpose. Financial details well identified and described. Demonstration of high-level understanding of financial plan purpose. Financial details
comprehensively identified and described. Demonstration of advanced level understanding of financial plan purpose. /7
Business Pitch (in class) Read notes with very poor verbal and non-verbal communication. No mention of key features of game and research to spark investors interest. Didn’t not mention amount to be raised. Fair pitch. Read notes; Verbal and non-verbal communication needed to be much stronger. Didn’t highlight key features of game and research to spark investors interest. No mention of money to be raised. Good pitch. Relied on notes a little bit. Good verbal and nonverbal communication. Highlighted some key features of game and research to spark investors interest. Included amount to be raised. Very good pitch. Didn’t read notes; very good verbal and non-verbal communication. Highlighted most of the key features of game and research to spark investors interest.
Included amount to be raised. Excellent pitch. Didn’t read notes; excellent verbal and nonverbal communication. Highlighted key features of game and research to spark investors interest. Included amount to be raised and what it is for. / 7
STRUCTURE FORMAT 8
Answer clearly and logically presented Serious lack of organization. Body paragraphs do not refer back to or relate to main arguments. Writing is formulaic, i.e. “in conclusion,” “another example is….” Writing style could be more effective. Organization is hard to follow; there is little progression of ideas. Little or no transitions between paragraphs. Need to more effectively weave main points throughout. Paragraphs are generally well organized. Better transitions needed. The progression of ideas could be more thoughtful. Paragraphs relate back to main points. Paragraphs are well organized. Very good transitions. There is a very good progression of ideas. Paragraphs relate back to main points. The organization of the plan is excellent. Paragraphs are extremely well organized and relate to the main points. /2
KBS ASSESSMENT 3 OUTLINE
Appropriate theory and research used to answer question posed The plan does not have appropriate structure and lacks direction. No significant observations made from appropriate theory and research. Poor writing and justification for the venture. Reasonable plan which examines the relevant issues and makes reasonable observations made from appropriate theory and research. Reasonable writing and justification for the venture. Good plan examines the relevant issues and makes good observations from appropriate theory and research. Good writing and justification for the venture. A very good plan considered all the relevant issues and made important observations made from appropriate theory and research. Very good writing and justification for the venture. Fully considered all the relevant issues and made significant observations made from appropriate theory and research. Excellent writing and justification for the venture. /2
Correct academic writing style used, including correct spelling, grammar and punctuation Needs more sentence variety. Little or no thought given to diction. Tone or language is conversational. Contains much informal language. Uses “I” or “you.” Contains many examples of unclear or awkward phrasing. Needs more sentence variety. Attention needed with diction. Contains informal language or conversational tone, or uses “I” or “you.” Unclear or awkward sentence phrasing Sentence variety is adequate. Tone is appropriate. Diction is clear, but could be more effective. Language is academic, and writing is clear and effective. Very little or no unclear or awkward phrasing Sentence variety is effective and good. Tone is appropriate and consistent. Diction/ vocabulary is appropriate and effective. Language is academic. Writing is clear, and concise. Sentence variety is effective and sophisticated. Tone is appropriate and consistent. Diction/ vocabulary is sophisticated and effective. Language is academic. Writing is clear, concise, and strong. /2
Format of answer consistent with question requirements and KBS guidelines. No efforts made to follow submission and editing, spacing, etc requirements. Meets most editing, spacing,
fonts, and other editing requirements. Some requirements not met. Meets editing, spacing, fonts, and other editing requirements. Meets almost all editing, spacing, fonts, and other editing requirements. Meets all editing, spacing, fonts, and other editing requirements. /2
Comments
KBS ASSESSMENT 3 OUTLINE