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Cine Bangla is the first Bengali movie channel wants to establish itself as an "Entertainment medium"
for backward masses of rural Bangladesh. This Television channel will provide the viewers a complete
atmosphere related with Bangladeshi film as well as film related any information which they have never
experienced before. Viewers will get to watch new or old film through this channel. They will also get
the information about the film star through various shows which will be telecasted in Cine Bangla.
Viewers will also get the information from various shows about the release of upcoming film, the market
of Bengali film, the investment and return of every film, the box office result of each film, the cinema hall
related information etc. Cine Bangla will also try to produce Bengali film and wants to promote Bengali
film for viewers of the world. Thats why Cine Bangla will encourage film directors to make world
class movies due to its ultimate goal which is to put the Bengali film at the world class standard and make
world class film in Bangladesh.

Mission Statement
Keep the community connected with their culture through the biggest entertainment of the
Bangladeshis. We are the only channel which will promote the biggest screen of broadcasting media of
Bangladesh at the international level.

Vision Statement
We will help BFDC (Bangladesh Film Development Corporation) and together will make our
DHALIWOOD Dream, which is to make world class film in Bangladesh as well as promote our film in
the international arena.

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Key Program
Our Programs and services:
Our Programs & services are..

1. Cine Bangla will telecast different types of Bangladeshi film within different categorical areas.
For example;

i.

Comedy movies,

ii.

Dramatic movies,

iii.

Action films,

iv.

Childrens films,

v.
vi.
vii.

Social awareness film,

Documentary,
Art film etc.

2. Cine Bangla will telecast different types of shows related with Bangladeshi film industry. For
example;

i.
ii.

Shows about promotion of upcoming movies,

Shows about film stars,

iii.

Shows about the development of film industry,

iv.

Shows about the market of current released movies etc.

3. Cine Bangla Will telecast Movies songs.

4. Cine Bangla will help to produce world class movies within our countries boundary.
5. Cine Bangla will also help directors to make movies.

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Program Schedule (Sample)

Time

Programs name

7:30 am

Movie song (old)

8:00 am

Upcoming movie news

8:30 am

Movie song

9:00 am

Movie

12:00 pm

Talk show with film star

12:30 pm

Shows about current released movie

1:00 pm

Movie song

1:30 pm

Promotion of upcoming movies

2:00 pm

Movie

5: 00 pm

Upcoming movie news

5:30 pm

Movie song

6:00 pm

Movie

9:00 pm

Talk show

9:30 pm

Movie song

10:00 pm

Movie

Except these programme mentioned above on daily basis we will telecast some special movies
on our channel on special days. There are so many special day such as, 26 th March, 21st February,
16th December, Mother day, Father Day, Eid Day, Valentine day, Friendship day etc.

Strategic goals & Objectives

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Our current objective is to capture the majority portion of viewers through the uniqueness of
program which is related with the development of the current situation of Bangladesh film
industry. Except these we are trying to manage and operate the channel in the most efficient
manner to enhance financial performance and to control cost of funds. We are also trying to
focus or our current strategies or objectives are given below.

Strategic Goals:

To identify viewers preference and other commercial organizations needs and monitor
their perception towards our performance in meeting those requirements.
To review and update policies, procedure, rate card, program schedule and practices to
enhance the ability to extent better program for our viewers.
To strive for viewers satisfaction through quality control our program and show of
timely basis.
To promote organizational effectiveness by openly communicating company plans,
policies, practices and procedures to employees in a timely fashion.
To train and develop all employees and provide them adequate resources so that viewers
need can be reasonably addressed.
To increase direct contact with viewers in order to cultivate a closer relationship between
the channels and its viewers and business customers.

Strategic Objectives:

To become one of the best channel in Bangladesh in terms of showing Bangladeshi film.
To ensure optimum utilization of all available resources.
To develop and retain a quality work force through and effective Human Resource
Management system.

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To pursue and effective system of management by ensuring compliance to ethical norms,

transparency and accountability at all levels.
To ensure an adequate rate of return on investment.
To maintain a healthy growth of business with desired result.

Corporate Culture:

Employees of Cine Bangla will share certain common values, which helps to create a
cine bangla culture.
Search for professional excellences.
Openness to new ideas and new methods to encourage creativity.
Quick decision making.
Flexibility and prompt responses.
A sense of professional ethics.

The electric media industry in Bangladesh is not a old industry and Bangladeshi people introduce
with the industry in very recent years. There have many media channel in Bangladesh but since
the industry is booming and staying in growing stage. The electric media channels have a huge

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investment opportunity yet and investors can get return very easily. Its a service oriented
business but investor can seek to make profit or at least to get back their investment very easily.
In Bangladesh, since investment in electric media now has been recognized as profitable one,
therefore lots of Companies invested in this sector and got success. The businessmen are
increasingly getting more interested in electric media channels.

Moreover, they are buying local and foreign established television broadcasting channels which
are not economically viable. As a result, concentration, rather than diversification, is gradually
becoming the trend of the day. Electric media industry is still developing in our country, except a
very few, most of Bangladeshi electric media channels are established by big business
organization or political backed power full people. So it can be safely said that they have a good
financial support. With this background, any one cant deny the potential prospect of electric
media industry in Bangladesh.

Porters Five Forces

Porters Five Forces:

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1. Risk of Entry by potential competitors:

Potential competitors: Electric media channel establishment need huge initial

investment and abundant efficient employees. Need to fulfill many governmental

regulations, so its very difficult to establish a electric media channel and opportunities of
new comer is low.
Brand loyalty: In electric media industry brand loyalty have a big impact. All

organization tries to provide quality programs and services and all channels face a huge
competition.
Absolute cost advantage: The electric media channel have a large fixed cost so all

competitors try to improve their efficiency because of reducing their per minute cost of
program broadcasting. The competitors always try to improve their production, marketing
and technology.
Economic of scale: The electric media channel segment their program in different time

and divided also their commercial advertising programs in differernt time to reducing
cost structure and offer different charge for different time. For bulk commercial
advertising television channel demand reduced charge from client.
Customer switching cost: There is very low switching cost for customer. All television

channels in industry always offering competitive price from client so all electric
broadcasting channels face a huge competition with rival.
2. Industry competitive structure:
There are many competitors competing for the same customers.
Market growth is slow which means intense competition.
Because of high fixed cost everyone tries to achieve economic of scale.
As products lose value if not sold in one day, so selling as soon as possible is a motive for
everyone.
Core product is hard to differentiate.

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3. Bargaining Power of Customers:

There are many sellers of electric media channel in this industry.
Switching cost for buyer of the product is pretty low.
High fixed cost forces the electric media channel to sell more.
It is hard to differentiate the core product, so all the electric media channels are somewhat
standardize.
It is evident that customers have moderate bargaining power in this industry.

4. Bargaining Power of Suppliers:

Electric media industry requires raw materials tape, camera, broadcasting machine, editorial machine,
journalists, program maker, editors, information, and other supplies.
There are many suppliers for the electronic media industry.
The customers of the suppliers are not fragmented rather their requirements standardize.
There are also substitutes for the inputs required by the electric media industry.
So the bargaining power of suppliers in the electric media industry is low.

5. Threat of Substitutes:
The core business of electric media is to provide entertainment and news which are threatened
heavily by other electric media channels, internet, cinema hall and theaters
The cost of switching to the substitute products is very low. Some cases it is even free to switch
and convenient.
The current trend of people is become internet centric.
Threat of substitution for newspaper industry is very high. Today electric media industry requires
innovation to survive.

Core Competence
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4.2 Creating core competencies and distinctive competencies

The very first steps to enter Television industry is to find a way to the communication and
information. This communication and information backdrop is the ultimate play ground that is
enormous than the traditional mass media environment. To stay in the race to bottom, to survive
and flourish in the changing world and changing industry structure as well as competitive state,
the business undoubtedly require an unique competitive strategy. Business requires adapting to
necessary changes and shows a quick response to sustain its competitive advantage.
A greater personalization of relationship and interactivity between customers and Television
Company can be achieved through an integration of activities. Our Television may offer package
of services and products in to a complete service bundle for the customers. Services such as
searchable news archives, interactive forum, and hottest information and media presentations
will be offered by the business. The potential competitive advantage of television company is lay
out by the increased integration of activities with the help of new technologies. A firms specific
strength that allows it to differentiate its product and services are better known as Distinctive
competencies. It may come in the shape of achieving substantially lower cost than its rival and
thus gain a competitive advantage. Distinctive competencies arise from two complementary
sources: resources and capabilities. Substantial investment in capital and adequate expertise is
required to use these technologies in a competitive way.
By strengthening distribution network capability the business can increase its capability.
Example, distribution costs contribute about 20% of the total costs of a television
company. Scale economies may help to gain a larger distribution network with the recent
development of the technology. To network more efficient and faster, the information
technology will help us with networking. As a result a reduction in total cost of
distribution is possible due to one common distribution network or also outsourcing can
be an option to carry out distribution through independent companies.
Another method to increase capability is to increase the efficiency in the production
process. The existence of economies of scale due to spreading product specific fixed
costs include the relative high expenses to set up a production process, for example, the
time and expense required to set up a television before broadcasting. With a unique

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design product market it can develop competitive advantage. Hence, economies of scale
in producing a circulation are incorporated as a result of the possibilities of mass
production of the circulation.
Resources can be increased by marketing. A substantial fixed cost is involved with
marketing; this implies the existence of economies of scale. Marketing is used for another
purpose that is to create brand image and loyalty of customers. Image and loyalty are
related to the notion of Goodwill. The business shall build up goodwill with a
consistent policy, marketing and highly qualified circulations. A television reputation and
reliability depends crucially on the circulation of the program. Circulation products are
sold in two markets: the viewers market and the advertising market. A change in
reputation in one market will affect the sales in both markets. Companies with a good
reputation can sell their circulation to wider range of people.

Industries SWOT ANALYSIS

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A SWOT analysis is a strategic balance sheet of an organization; that is the strengths of the
organization, the weaknesses of the organization, the opportunities facing the organization, and
the threats facing the organization. It is one of the cornerstone analytical tools to help an
organization develop a preferred future. It is one of the time-tested tools that have the capacity to
enable an organization to understand itself, to respond effectively to changes in the environment.
The purpose of the SWOT analysis is to provide information on strengths and weaknesses in
relation to the opportunities and threats.

Strength:
Unlimited demand: The electric media broadcasted all over the world and their demand
has all the countries of the world.
Performance as a mass media: The electric media can provide entertainment, news,
educational programs and can easily reach all the people all over the world.
Accountability:
Trust worthiness: The electric media can reach any people anywhere at any time and
mass people frequently trust what they watch at electric media channel.
Biggest entertainment: The electric media one of the biggest way to entertain people.
The media entertain people and give them pure satisfaction of their laser time.
Weakness:
Lack of experience: It a very recent industry of our country and industry face a lot of
problems to get experience people and support organization.

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Cost of equipment: The establishment and daily performance the sector need huge

amount of costly equipment and its very difficult to arrange that equipment.
Lack of efficient and experienced people: The electric media always face experience,

energetic and qualified people.

Government regulations: To establish and run the business the industry need to follow
governmental strict regulation. For this reason many organization leave the industry.
Risk of entertain into the industry: All organization over the industry try to give full
satisfaction of their viewers and its very difficult to broadcast differentiated and quality
programs and attract viewers.
Opportunities:
New and emerging industry: In Bangladesh the electric media industry is new and now
at growing stage. So all organization have opportunities to earn a profit.
Source of income: Many people want to establish their carrier with electric broadcasting
organization and the industry give them the opportunities.
Labor cost: Comparatively in our country labor cost is cheap so there have huge
opportunities to establish a world class competitive organization.
Cultural opportunities: Our country is rich of own culture and the industry have the
opportunities to reach the culture all over the world.
Threats:
Political threats: In our country almost all electric broadcasting channels established by
politically influenced people. So the channel faces problems if they elected as opponent
party.
Barrier from religion: In our country the electric broadcasting channel face many
religious problems from many religion parties.
Economic fluctuation: Our country face economic fluctuation and that fluctuation have
strong impact on electric media channels.

Competitive Advantage
A competitive advantage is an advantage over competitors gained by offering consumers greater
value, either by means of lower prices or by providing greater benefits and service that justifies
higher prices.

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Resources

- Innovation
Distinctive
Competencies

Low Cost

- Quality
- Efficiency
- Customer
Response

Value
Creation

Differentiation

Capabilities
Figure: Competitive Advantage

In order to achieve a superior customer response we wish position our television, as a symbol of
uniqueness where it will be act as an independent entity. This can only be achieved by pursuing a
Differentiation strategy. We are also going to follow low cost strategy along with differentiation.
So it means we will follow the focus strategy which includes both low cost and differentiation
strategy.
Here our selection of criteria is unique design and high quality which will justify our premium
price. However we beg to differ in our program by following the best cost structure. The best
cost structure is the combination of low cost strategy with differentiation. We will produce
competitively priced products that charge the same price as the premium quality producers
existing in the market however the look of the product will be unique as well as attractive.
The core competences described above will help us to achieve this Strategy. Since we are group
of new generation television channel we know the total quality management effectiveness in the
production system. The efficiency level will rise.
Some competitive advantages described below which will distinguish us from other competitor
shop:

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Qualitative service: We are so enthusiast to provide the customers better qualitative

program than our competitors.
Unique Program: We will telecast different movies on different segment such as
Romantic, Action, Horror etc. except this we are showing different Programs like Movie
songs, talk show with celebrity, movie news etc.
All time Movie: No other channel than us telecasted all time movie.
Mass viewers: As our business is mainly focused on the general people of our country,
we will provide them most important needs along with their biggest entertainment.
High Television Rating Point (TRP): From our analysis we found that the TRP of
movie is the higher than any other program due to the biggest viewers of our country,
who are likely to watch movies. In current situation there is no individual movie channel
in our country.

Additional Strategic Consideration

Action to capitalize on new opportunities and defense against threats:
Action to capitalize on new opportunities:
1. Making public relation for publicity
2. Establishing strong and flexible distribution channel for reducing cost

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3. Evaluating market and trying to enter into new industry

4. Making good relation with employees for their best effort
5. Expand and enrich relation with suppliers
Action against threats:
1. Try to creating monopoly
2. Increase diversification
3. Create market barriers for new entrants
4. Giving different promotion
5. Vast amount of advertisement
6. Doing CSR for enabling customers positive attention
7. Establish low cost leadership
Acquire to strengthen business position:
1. Developing a Divestiture Strategy
2. Availability of vast resources
3. Increasing Revenue from Possible Sources
4. Creating market demand
5. Proper supply of movies.
6. Effective and efficient marketing finance department.

Market overview focuses the atmosphere of external environment which is a most volatile factor for any
business organization. The most important thing of the market is the potential viewers who are the stake
of any business organization. Any business organization profit, market share, brand image, long term
sustainability totally depend on customers. In addition, size and growth of the market is mostly depending
on economic, social and political condition. As we intent to deal with mass customer so our market size
is large which shows the possibility of rapid growth. Strategic group Analysis is used to determine:

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Different competitive positions of companies in the industry

Intensity of rivalry within and between groups
Profit potential of various groups
Implications of competitive position

Our strategic group members are my TV, Bangla Vision, Baishakhi, ATN, Channel I and others
because they are providing almost same service to the local customer as we want to do. They
also have good customization in terms of program relaying toward viewers. They have already
created distinctive competencies through relaying various quality program service. But our
business strategy is not quite similar with them because no other cable tv concentrates on
specific program like 24 hours Bangla movie and movie related programs, they are unable to
compete directly with us.

Potential Customers
5.1 Potential Customer:
Film Industry is a very prominent and well recognized sector in our country among different
classes of people. Our countrys people are much ethnocentric toward their own culture,
traditional values and norms. Thats why they more prioritize the own cultural related program

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and Bengali film is one of the favorite TV program among all classes of people. The two third
people living in rural area who are mostly like to watch Bengali film. The rest of the people
reside in urban area who also watch such program. So, we can assume that our potential
customer is spread out in both rural and urban area.
Moreover, attracting a new customer is two times harder than keeping a good relationship with
the old customers. So companies always have to keep in mind that the customers need, which
will help us to some extent to shape our business strategies. Customer needs are basically derived
by the customers segment that we have targeted. As our Channel program is transmitted through
the Cable Network and Cable network is available in both rural and urban area so it would not be
a problem for local potential customer to watch our program. So, it would be a logical thinking
to consider mass customer rather than specific segment.

Size and Growth of the Market

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Electronic media industry is not so small in Bangladesh, the growth rate is quite also high as the
number of television channel, ways of use and types of offerings are increasing day by day.
Traditionally only Bangladesh Television (BTV) were published before 1971, but now a
days lots of companies are coming in this industry. It got popularity because the world is
globalized and people want to know information within a second.
The market demand of the telecast channel in Dhaka city is high. At present days, many
television channels are established on the basis of individual category.
The country has now 5.75% GDP growth and 270-dollar per capita income, which means higher
purchasing power and affordability of the people. Thus, we can expect that the growth rate of
both the industry and the business will be positive in future as well.

Strategic Group Analysis

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5.3 Strategic Group Analysis

Strategic group Analysis is used to determine:
Different competitive positions of companies in the industry
Intensity of rivalry within and between groups
Profit potential of various groups
Implications of competitive position

Figure: Rate of relaying movie ( in days) per week

Our strategic group members are my TV, Bangla Vision, Baishakhi, ATN, Channel I and others
because they are providing almost same service to the local customer as we want to do. They
also have good customization in terms of program relaying toward viewers.They have already
created distinctive competencies through relaying various quality program service. But our
business strategy is not quite similar with them because no other cable tv concentrates on

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specific program like 24 hours Bangla movie and movie related programs, they are unable to
compete directly with us.
However, some Hindi movie channel is our direct competitor. Their target group and our target
groups are also quite similar. But, as, they are already in a suitable position in the market and
have a good market share and we are new in the market but want to capture the share of the
market as they did, we will open our corporate office in the Moghbazar area as we are starting
our business from the scratch and strengthen the company using that platform. When, we will
have an established position in the industry, we will plan to their areas as well.

Our position among the strategic group members are shown by a positioning map below:

Cine bangla
my tv
Types

Bangla Vision

of

Baishakhi

Channel

ATN, CI, and ntv

Desh tv

Figure: Frequency of movie program (in days)

The above graph shows that how many days different movie channel relay movie and other
movie related program within a week. my TV scored highest 5 days, Bangla vision 3 days, ATN
bangla, Channel I, ntv 2days and Desh TV relay movie just one day per week. The rate of

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relaying movie and movie related program is not sufficient because viewers have less time to
watch such program. Time management is the most complex thing for themselves in order to
watch such program. They even dont know when they will get free time for entertainment. By
considering those facts we want to make it available in order to respond various type of viewers
at a time by relaying movie in whole week. That position might help us to differentiate ourselves
among competitors.

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We are going to establish a great strategic plan for Cine Bangla. Basically these plans are for
Crafting, Implementing and Executing company strategies. The management of Cine Bangla will
use those plans to stake out a market position, conduct its operation, attract and please customers,
choice among alternatives. There is another major tendency of this strategic plan and that is the
company will be always ready to meet changed circumstances, new technology, new
competitors, a new economic environment., or a new social, financial, or political environment,
to positively react with changes, taking proper steps whenever needs.
What does our strategy consist of are given below:

React to change.

Planned Action &

initiatives to
compete rivals

Alter Geographic
coverage.

Merge/ Acquire
to strengthen
business.

Strategic
alliance to
collaborative
partnership.

Action to diversify
companys
revenue base &
enter to new
business/
industries.
Action to
strengthen
resource base for
competitive
capabilities.

The
pattern
of
actions
and
business
approach
es that
define
strategy.

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Define how to
manage R& D,
Production, sales,
marketing, finance
etc.

Action to
capitalize an new
opportunities &
defend against
threats.

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Long Term & Short term Strategy

Short term strategy
Planned actions and initiatives to our competitive rival:
As a new company in TV channels Industry Cine Bangla will have to locate its planned actions
and initiatives to compete with the rivals. For this first have to make available information, in
order to endure and prosper in the todays changing industry structure and competitive situation.
TV channel companies clearly require a viable competitive strategy. We have to make passable
editions to these vibrant changes and react quickly to create our competitive advantage.
At first increasing network capability. The information technology will enables us to
network more efficient and faster. Hence, we can reduce the total cost of distribution
when we have only the facility of Dish cable network system instead of overall network
coverage in whole country.
Increase companys image and loyalty that are related to the notion of reputation. We
will build up a reputation with a consistent policy, marketing and highly qualified
circulations. TV channel companies offer circulations that are crucially depended on their
reputation and reliability.
Innovations in TV channel industry are an important source of scale and scope
economics. By innovating new movie related program and design we can raise our
companys capability and beat the competitors.
Action to diversify companys revenue base and enter into new business or industry:
For our Channel we can take some initiatives to increase our revenue base:

Structure coalition with the other leading media components.

Achieving high arrive at in marketing, promoting and advertisement.

Reducing advertising and media charges.

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Effective distribution channels that brings less expenses as well as efficiency and
decrease complexity.

Long term strategy

We have a plan to expand our Cine Bangla near future to other industry. Like if we are success
in TV Channel industry then we will move for Sports Channel
World Class Cinema Hall business.
Radio

Action to strength resource base for competitive capabilities:

Vast resource can make a company successful and effective. So we are trying to emphasize on it.
For our Channel in managing resource management we will includes certain criterias which are
as follows:
Human resource management (assign and hiring effective and efficient people for the
job, and also through head hunting)
Efficiency record
Technological advancement.
Injecting more on the R&D (innovation is the key to differentiation)

Define how to manage production, R&D, sales, marketing, and finance:

For managing production, R&D, sales, marketing, and finance we will take some initiatives they
are below: Recruiting people like marketing people only for marketing department, finance people
only for finance department.
We will arrange weekly and monthly supervision for their work.

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Each department will be separate from each other but they will have strong
communication and exchange of information.
We will budget for each department.
Updating departments with changes.
Successful implementation of 3 layers of manager for maintaining each department.
Continuous research for making them up to date.

Alter geographic coverage:

To alter geographic coverage we will make our channel superior with global standard. So to
reach that level we will incorporate the following strategy

We will make strategic alliance with some foreign movie to have better access for
entertainment and provide better sound and picture quality to the viewers.

We will invest in R&D to improve so that our viewers and advertisers are satisfied fully,
like new design for movie related program to deliver interesting & relevant entertainment
in such a way that engage the viewers heads and hearts and make it possible for the
advertiser to focus particular segment they want to target.

We will provide wide variety of local & world movie news.

We will conduct researches to find out what viewers want most and develop based on
that.

We will show special movie on some Nationally and Internationally Special day such as
Valentine day, Fathers Day, Mothers Day, Independent Day, Victory Day, International
mother language Day, Eid Day, Puja etc.

React to change:
Managers often make the mistake of assuming that once a change is started, that employees will
see that it is going to take place, and get on side. This is rarely the case. Because change causes
fear, a sense of loss of the familiar, etc. so we will try making our Channel go away from it.
There are 2 reasons behind taking time to react with change. They are-

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a) Understand the meaning of the change and

b) Commit to the change in a meaningful way.
It is very important to make capable our Channel to go through stages in their attempts to cope
with changes.
Some business reasons are responsible for change. They are below:

sales development

new product development

new market development

business organization, shape, structure and processes development (eg, outsourcing, ebusiness, etc)

tools, equipment, plant, logistics and supply-chain development

people, management and communications (capabilities and training) development

strategic partnerships and distribution routes development

international development

acquisitions and disposals

There are some steps for response to as soon as possible to cope up with changes. They are:
1. Increasing employee empowerment
2. Growing customer relationships
3. Escalating employee motivation
4. At all times involve and agree support from people within system (system = environment,
processes, culture, relationships, behaviors, etc., whether personal or organizational).
5. Understanding where the organization is at the moment.

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6. Understanding where we want to be, when, why, and what the measures will be for
having got there.
7. Communicate, involve, enable and facilitate involvement from people, as early and
openly and as fully as is possible.
So finally this will be our overall strategy. We are expecting to work according to this plan.
However it will be subject to change because of internal or external forces.

The value chain a systematic approach to examining the development of competitive advantage.
In order to find out the source of competitive advantage we must do value chain analysis. The Tv
broadcasting value chain diagram is given below.

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Figure: TV Broadcasting value chain

Existing Core Competencies

Competencies make a product or service differentiated. Same goes for The CINE BANGLA.
One of the key core competences is the channel itself which provides superior quality Bengali
movies, uniquely designed others movie related shows with spectacular combinations as
customers want or customized. However, a range of options is always ready for customers to
pick their choices. Another precious core competence is the effective human resources. It is
indeed very efficient way to execute the whole process. All the people who are working are quite
efficient to pursue their jobs effectively, efficiently and spontaneously. This effective human
resource is going to formulate our channel different that no one can offer. Our human resources
are going to ensure that all the work will be done in the right way, on the right time and with
pertinent completion in the end. If they are not active then its really tough to come up with valid
shows.

Future Competencies
Though we are coming with a channel based on only movies, it is not a much familiar and most
importantly no other channel is using the Bengali films as core competency. Still the competition
is high among various channels. As the competition is high in this sector so if we conduct our
business with very professional way and satisfy this areas people desire; then it is certain that we
can capture the target markets. Moreover our other desires to expand the business so if we

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actively do our activities and duties in near future we will capture the leading position in this
sector.

However CINE BANGLA can analyze its future competencies through the following SWOT
analysis:

Strength:
A company should be aware of its core capabilities and sources of competitive advantages. Core
capabilities are the critical skills and processes that an organization executes so well that its
reputation builds around it.
Convenience: It will provide only movies around the whole day long and most update
news about upcoming movies at a single place which will be convenience for the
customers. As they dont have to switch channels to watch movies.
Enthusiastic Management: It has some enthusiastic young entrepreneur and they are
committed to the business to make it very profitable.
Quality products: its services will be superior to our competitors and quality will be
monitored strictly. It will not compromise anything with quality.
Market segmentation: Its market demographic segmentation is much broader
Easy and Faster broadcasting: Its broadcasting process is faster and customer can get
information about when and which movie will be broadcasted.
Superior creativity skills of the employees: Its service is quality assured because its
people are the best. Its attention to detail and honest approach will earn customers trust
and loyalty. Employees creativity and experience will provide its customer with strategic
solutions to their marketing needs - no matter how demanding.
Promotional tool: Word of mouth - its reputation, brand awareness, superior quality
and unique value proposition will spread via its clients.

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High quality, expedient and convenient service: To achieve the planned turnover by
sponsorship and to build up customer loyalty on a consistent basis it provides quality,
expedient and convenient service to its customers. This will help to build up a long term
relationship with clients.

Weakness:
In addition to knowing its strengths, an organization must recognize its limitations. We do have
some limitations as well.
New employees: It wants to diminish its operating cost and that is why it will employ
new employees who might not have previous experience to work in this businesses.
High cost: due to high inflation the costs of the raw materials are extremely high.

Opportunities:
External and internal environments present both driving and restraining forces. Opportunities
may occur suddenly. With the past pace of globalization and technology changes, what may
initially present itself as an opportunity may become a threat if organizational responsiveness is
too slow or not well planned?
Extension of the services: In future it is expecting to increase its offered broadcasting
programs. For example: Talk shows inviting the movie personal.
Open market: CINE BANGLA will work within an open market and has the scope of
growing big in the short span of time depending on how known its brand name is.
Market Expansion through diversification: Management of CINE BANGLA gradually
expands their firm by diversifying their services offered in the near future.
Further promotion: It will educate people about its services through leaflets describing its
services and how it is different. It will promote through electronic media and billboard.

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Threats:
Threats are negative external environmental factors which influences an organizations decision.
External factors are not controlled by the organization and to survive every organization needs to
be very alert about its threats and how they can overcome this problem. Organizations should be
proactive rather than reactive and should be aware of what are the competitors moves and
should take necessary action in advance to face those moves.
Rivalry Competition: At first it will have to compete with various established channels
who are broadcasting diversified programs.
New Entrants: Seeing its business similar business may arrive which might grind our
profit.
Economic Fluctuation: Economic instability will lead the business into chaos. And
inflation, recession, depression, etc. will lead economic downturn of the company.
Demand of the customer: In gift and flower section people demand are changing day to
day, so in future it is difficult to predict people demand and satisfaction which is another
threat for CINE BANGLA.

Product/Service Overview
7.3 Product/ Service Overview
Our objective is to change the peoples taste and remind the root of our culture that has been
blemished with so called movies that are full of pornography and irrelevant songs. We have set
out services that we are going to give customers is nothing but the true taste of Bengali movie.
Well the total feature has been described in section.

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Facilities
We will try to come up with the best facility that a customer can expect. We are surely going to
offer our valued customers with valued facilities. These offers simply make their life soothing by
getting all the time movie taste. They dont have to wait a week for a single movie. They can join
when they want. We pledge to do all the convenient facilities for our customers. The esteemed
facilities are; on-line news, movie schedule, different types of version for different occasions, job
offering in our office. We are doing all these because our customers are special to us and we
consider that this is our responsibility give them the best offer which also look after to save their
time. All other regular utmost facilities will be provided there in our channel regarding movies.

Equipment & Machinery

We decorated our office and outlet in a very creative way. We created our office such a way that
it always looks fresh, colorful and festive look. One of our partner experts in interior designing
and another one have effective managerial expertise. This attributes boost up qualitative
atmosphere in the business.
For office we have chairs, tables, computer and Stationary Items in each of the room. All
the rooms are expecting to have around 1200sq. feet.

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Broadcasting equipment
Production equipment
Whole building will be central air-conditioned.
In recreation room, there will be a plasma TV, a sofa set and a coffee machine.

There will be individual department for each section i.e. HR, Finance, Marketing, IT,
etc.

Our office will also have a big freeze to keep some refreshment for the guests and
employees.
For documents, we need some fixed shelf.
Other decorating items office.
We also need 5truck or other stuffs for distribute the newspapers.
Lights, fan, paintings and creative posters for cool look.

Production process
The key stages in the production process for Cine Bangla Channel are:
1 Submit
2 Development
3 - Editorial Approval
4 - Budget Approval
5 - Contractual Issues
6 - Production
7 - Delivery and Transmission
1 Submit:
Take an idea that is right for Cine Bangla.
Think about who would watch it, the schedule, how it will be made, who will be in it, who will
make it, how long itll be and why it should be made now. Make sure you know about the
Channels commissioning priorities and requirements. It can find out this information in the

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Commissioning section of this website. Thisll give an idea as to the commissioning editor that
should approach Watch Cine Bangla! Its a good way to figure out if something is right for the
Channel.
Write a clear proposal
The proposal shouldnt be longer than 500 words and it should have a very clear proposition. It
should be able to sum up the programme in a few sentences.
Submit your idea
Use the Online proposal system, which is on the main navigation of the cine bangla producers
site.
Well respond with a yes or no or maybe within 4 weeks.
2 - Development
If the answer is a yes make sure youve read the Cine Bangla Code of Practice - This
outlines how the commissioning and commercial affairs processes work and who has
responsibility for what throughout the process. You can access this in the resources section of the
cine bangla Producers website.
If its a yes, the commissioning editor will call you in for a meeting and you can both
decide if the idea would work on any other platforms
Cinbe Bangla Interactive will help decide if it has cross-platform appeal, or if you have contacted
other platforms directly, theyll direct it to the relevant commissioning editor.
If its a maybe, you might be asked to develop the idea further and submit a treatment
3 Editorial Approval
Once go-ahead is given, a project form is raised
The form should be raised 6 weeks before production is due to begin youll be informed by the
commissioning editors assistant that this has been done.
Negotiations about the budget and rights issues should now begin.
You should now submit an Editorial Specification form

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You can find a blank form in the resources section of the Cine Bangla Producers website. The
forms purpose is to pin down details of the program, which will form the basis of negotiations
with Commercial Affairs. The price we will pay is determined by tariffs set for each genre of
programming, which can be found within the Code of Practice.
4 Budget Approval
There are 3 stages of Price approval:
1. Commissioning Editor& Commercial Affairs Manager
2. Head of Department
3. Program Finance Committee or Business Approval Board
Before the final stage, youll need to determine whether the project requires deficit funding. If
the project does, it will be your responsibility to find the funding.

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5 Contractual Issues
Whilst the price is being agreed, youll also be negotiating the contract details and rights with a
Commercial Affairs Manager. Before pre-production begins the contract should be signed and
agreed.
Your project is not fully commissioned until the budget and contract have been signed and
agreed by both parties.

6 - Production
Whilst the production is underway you will discuss the Press and Marketing potential of your
program. Press and Marketing possibilities will be explored in line with Channel priorities. The
commissioning editor will attend viewings during post-production according to an agreed
timetable. If appropriate, the Interactive Editor will work on the online content
7- Delivery and Transmission
Delivery of completed program
Make sure that your program meets all delivery requirements you must have read and adhered
to the program end credits guidelines and the program delivery guidelines, both of which can be
found in the Resources section of this site. If relevant you must also ensure all online
deliverables meet the technical specification established by the interactive department.
Transmission and go live!
Feedback
You should have a follow up meeting with the commissioning editor to discuss how the project
went. This should include ratings performance, editorial strengths and weaknesses, business
issues, the team, program vs. proposal, press & publicity and marketing issues and user traffic.

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Research & Development

All our enthusiastic directors are committed to their jobs and consistent service development.
Their devotion and thoughts towards the service are highly appreciable. Thats why; we always
have the eagerness to develop our service through research and development. We follow the
trend and have the plan to stick with the trend. If necessary, in the future well go for market
survey to get the current state of the market demand and well bring change in our channel
accordingly. We strongly believe that research and development is the sole way for sustainability.

Quality Assurance

We assure the quality. Maintaining quality is our commitment towards our valued customers.
Therefore, 100 percent quality is assured. We wont comprise anything to our quality. As we say
we will be neutral and independent. It is very important while you are in broadcasting business.
The customer who is loyal will like to have best quality movies. So if we dont keep our quality
best then we cant hold our brand value to them. On the other hand, our research and
development; is there for consistent quality development and for sustaining the quality
development.

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Marketing strategies deal with the perspectives of markets to be served. Therefore, our marketing
strategy is primarily based on positioning of our Bangla movie channel service to the mass
segment where cable TV is available. Our primary target market is general people of both rural
and urban area. Our marketing strategies reflect the ways to motivate the people to watch such
specific program like movie channel. Our venture needs a marketing plan to capture the market.
We are going to enter a current market rather not going to target a niche market.

Brand Elements
o Name of Channel: Cine Bangla
Brand

Memorability

Meaningfulness

Likability

Transferability

Adaptability

Protectability

Elements
Cine Bangla

Amader

Chobighor

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Sales & Marketing

Sales and marketing is a very important part of the marketing plan of a business. In the Movie
program business through cable TV sales and marketing is interrelated to each other. We are
focusing on both B2B & B2C here because we are staying in the primary stage. The marketing
strategy will blend both push and pull strategy together. As we are new in this business, we will
have to push first. After that when we will have strong brand value then naturally it will turn into
pull strategy.
The program (service) flow in case of B2B & B2C is shown in the diagram below:

Purchasing movie
program

From Film
Industry

Distributing

Local people

Figure: B2B & B2C service Flow

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We purchase movie and movie related program from different movie producer in Film industry.
First, we make contractual agreement so that they will ensure to supply quality movie in some
consecutive years. Then we keep such inventory of movie in our server and organize it in
different time schedule in order to maintain relay time. Eventually, we distribute such program
through the connection of our server and satellite in different plays where such cable TV is
available.

Distributions
We will relay our service (movie program) through our own movie channel as we want to
establish our business and want to introduce as a only Fully local movie channel among all cable
TV network.
Physical outlet:
We will relay our movie program mainly from our main office that is situated in the kawran
bazar area.

Advertising & Service Promotions

The company will maintain the best quality for its service and use selected advertisement
Medias. In our promotional campaigns, we want to introduce our specific movie channel through
unique offer in a broader extent. Most of these promotional tools will be targeted to our target
customers.
Transit Ad: Transit ad is one of the common and available source in order to advertise of
different product and service. As we are movie channel this type of ad might be effective for
enhancing our publicity and acquire viewers attention toward us. Because a large number of
vehicles drive on the street and people are moving continuously from one place to another.

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Bill board : Bill board ad is another vital advertising media in order to draw the attention of
large number of viewers and promoting our service rapidly. The source helps to reach large
number of customer at once . So. It is very important to properly locate the Bill board ad by
assessing the viewers level, crowed place and less advertisement of others companys
product and service. The most important benefit of Billboard ad is that viewers can control
the pace of receiving the message clearly other than Television and Radio advertisement
source.
Trailer in Cinema hall: Cinema hall is one of the gathering place and effective source for
catching large number of viewers. Everyday a large number of viewers watch movie in
cinema hall and it is a popular media for our countrys viewers. Besides, people are more
interested to watch movie in cinema hall than TV. So, giving trailer in cinema hall might be
a effective source for introducing our channel to the large viewers.

Advertising in print media like newspaper & magazine: People frequently use such
media source for knowing the various type of daily, weekly and monthly news in an instant
moment. Besides, such media is available in our country where each regional people can
access easily. If we use such media for our channel advertisement we might be the catch large
number of viewers attention within a short moment. Moreover, Magazine is another
important source for attracting women viewers because they are more used to read the
magazine.

Customer Service
Available of different foreign movie channel change our local peoples taste & flavor in terms of
entertainment source. It is because some of the foreign movie channels make their movie related
program available while movie seeker can easily watch at any moment. On the other hand such
movie channel is not available in our local TV network. Besides, though some private channel
slightly recover customer satisfaction but they dont have availability in relaying movie like any
other foreign channel. As a result local people rushing toward foreign movie channel in order to

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get ultimate satisfaction and distracting from local taste and flavor. If it is continue, the ultimate
effect would be on our local film industry as well as extinction of our local culture.
Under such status, we want to change the current phenomenon by bring back to the local people
toward local taste. As a result we want to satisfy customer by make such movie program
available and by providing what type of movie they want through considering our key business
objectives. So, we would have to think about attracting viewers toward our channel and retaining
them. If the relaying of movie program is not up to the mark it would be difficult for us to arise
the willingness to watch our movie program. So, we have to maintain the movie program
available and maintaining the relaying of quality movie.
Customer service is a significant part for any business Organization because effective and
efficient customer service can ensure the Customer loyalty and long term sustainability of
business. Most of the channel relaying programs without knowing the taste and preferences of
viewers and dont maintain the effective time schedule. As a result, most of the viewers might
deprive from watching such preferable programs because of their job responsibilities and other
activities.
In addition, receiving customer complaint exposes the ethical and accountable motive of doing
the business. But, most of the existing channels are far behind of concentrating on such viewers
complaint and solving problems. The ultimate effect would be the viewers switching from local
TV channel to foreign movie channel. Under such status, we considering such program related
issues and thrive to initiate the corrective action in order to solve the problem. We the
representative of Cine bangla designed some viewers responsive process in order to provide
ultimate satisfaction to the customer. The feasible process for receiving customer complaint
might be Online system, Customer care, sending letter through Post box etc.
Online system: We are living in technological age and Internet service is the wonder of twenty
first century. Viewers are more technology oriented and like to access internet in order to
performing particular activities.

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Online Booking Form:

Name of the Applicant :
Name of the Company :
Email Address :
Contact Address :
Telephone No :
Mobile No :
Requested Duration :
Requested Time Slot :
Monthly Package :
Message Subject :
Additional Message :

Our Online customer responsive form provides opportunity for customer to inform their
particular preferences regarding favorite movie related program and also in scheduling such
program. In Online form we offer customer to inform the favorite program and scheduling option
where they can submit their program and likable watching schedule.
Response viewers through Telecommunication: We want to respond all type of viewers in
order to make our Channel prominent among mass viewers and fulfill the business objectives.
However, not all viewers are likely to access to Online form because of technological difficulties
and viewers in capabilities. As a result, we offer a cost free code number in order to response the

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viewers need through which customer can inform our representative about their program
preferences and complaints regarding the quality of the program.
Response viewers through dropped in post box: Our potential viewers is spread out in both
local and urban area and cable TV network is recently available in village. However, rural people
might not aware such telecommunicating system in order to inform their complaints regarding
the quality of the program and variability in movie. Besides, Internet communication is a rare
case in rural area and people are absolutely unfamiliar with such facilities. As a result, we set up
a post box especially in such area where satellite channel are visible and people can easily send a
letter through post box regarding their favorite Movie and movie related program.
Evaluating the quality and availability of program through Survey method: Service
providing is our core business objective which is not sufficient for surviving among competitive
market of Channel Industry. So, there is no alternative method except developing and updating
the program telecasting which might be the only source in order to survive in suffocates Channel
Industry. As our vision indicates the long term sustainable business objective, updating program
relay and maintaining quality of the program would be the right pathway in order to implement
our dream.
We initiate a survey method which would be conduct per year among local viewers through a
questionnaire. In this procedure we select at least 200 people from different zone in order to
determine our current customer satisfaction level and quality level of our movie program.

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The Human Resources Department (HRD) function includes a variety of activities, and key
among them is deciding what staffing needs you have and whether to use independent
contractors or hire employees to fill these needs, recruiting and training the best employees,
ensuring they are high performers, dealing with performance issues, and ensuring your personnel
and management practices conform to various regulations. Activities also include managing your
approach to employee benefits and compensation, employee records and personnel policies.
Without a proper HRD, their can be a variety of different salary and pay arrangements in our
organization. Opportunities exist to bring these different systems into a new framework that may
overcome the difficulties of the past. Staff needs to have confidence in the salary administration
system. They want the rewards to be shared fairly and equitably.
Dissatisfaction can cause severe morale and performance problems. Some enlightened Councils
may establish an improved salary administration structure which is developed specifically to
meet local requirements. It is possible to develop a simple structure that overcomes the
difficulties of the past, yet is simple enough for everyone in the organization to understand. This
can be tied to a completely new performance management approach, including better
performance appraisal mechanisms. All these will be done by the perfect HRD.

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Key Issues
The Cine Banglas effective HR policy has several key issues those are described as following:
Recruitment:

Cine Bangla
Websitescreening, and selecting qualified people for a job
Recruitment refers to the process of attracting,

at an organization or firm. For some components of the recruitment process, mid- and large-size
organizations often retain professional recruiters or outsource some of the process to recruitment
agencies. Our recruitment processesHR
arePortal
as follows -

Current
Vacancy
Register CV
including
three key
words
detailing
areas of
expertise

Search job
Category/
Location
All application
submitted to
HR

Successful

Contacted via email

inviting to a come along
to a first interview, as
well as detailing the
time place and which
items are required to be
brought along. (I.e.

Search for
Current
Vacancies

Unsuccessful

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Contacted via email,

informing that applicant
have unfortunately
been unsuccessful on
this occasion. But
asking candidate if
he/she wish to be

Licence)

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Layoff Strategy:
Policy: - It is the Cine Banglas sole discretion to determine the need for layoffs, the
classification of employees to be laid off and the layoff unit. Our organization will minimize the
effects of indefinite layoff or reduction in time upon employees in career positions.
Principle: - Our organization priority is to provide continuing employment to current
employees and thus minimize layoff action.
Reasons for Layoff:

Budgetary Constraints.

Lack of work or operational constraints.

Reorganization or Redefinition of Cine Bangla or Departmental needs.

Training:
There are many important aspects to consider here. To create the Strategic Training and
Development Plan, we will need a detailed profile of our own;

Employee Training and Train-the-Trainer needs,

Team Building and Team Development,

Leadership Development,

Executive Coaching,

Competency Requirements and Skills Profiling,

Objectives and Action Plans,

Vision.

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All of these profiles will further have to be considered within the realms of Equity and Diversity,
Organization Values, Business Process Improvement, Change Management and Organization
Design and Structure.
In order to bring about the best results for the training strategy, the training products or services
need to be marketed and promoted by manipulating the following;

Product/Service - keep the training cutting edge and future focused. Make sure there is a
practical transfer of learning, put a development support network in place, and ensure
alignment to quality standards.

Promotion - commit to a core training value system. Create a slogan or tagline to brand
your training. Bridge the gap between perception and reality. Give your training a
personality and a brand, and remember your customers (your employees are customers)
want to know, "What's in it for me".

Price - cost the training accurately and calculate the value received.

Place - decide between on-the-job, classroom, distance learning, web-based and virtual
learning. Access, location, and distribution are keys to consider.

People's needs - establish what your customers want and need. Ensure your customers
know the training is meeting their needs and that these needs provide a base for decisions
in all other areas.

Project Management - Establish roles and responsibilities. Action the Training and
Development Strategic Plan. Monitor and evaluate progress and make adjustments where
necessary.

We should have the budget for our recruitment program, training program and as well as for the
layoff program. The distribution of the money for our recruitment program, training program and
layoff program are as follows:

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Program Name
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Training
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Money Estimated (Annually)

2,00,000
5,00,000
5,00,000
12,00,000

Total

Compensation package:
Without lucrative compensation package our employees will be highly de-motivated. We should consider
the equity factor while design the compensation. Such as

Internal equity

External equity

Individual equity

Organizational equity

Its very important to give employees a lucrative compensation package. Without this employees will not
be interested to utilize their effort at a great extent. Beside this a nice compensation package creates a
sense of job satisfaction in the employees. Employees became more loyal towards the organization.
In the present world compensation is the most important issue. So, we should have a lucrative
compensation package in its organization. Without this they will not be able to motivate the employees to
work efficiently. On the other hand if the international expatriates are not getting a nice compensation
package then they will not join in our organization.
Money is the main issue. That means without a lucrative compensation package nobody will utilize their
full effort in our organization. So, HRD of the company should design and implement a perfect
compensation package for the local and international expatriates while considering the industrial standard.
A good compensation package will motivate the employees more and more to work hard for us. Our
Compensation Structure is as follows Type (annually)
Directors Remuneration

Administration
30,00,000

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7,00,00,000

30,00,000

Increment @ 10%

70,00,000

3,00,000

Bonus

50,00,000

3,00,000

Provident fund

20,00,000

5,00,000

Travelling Expense

2,00,000

7,00,000

Staff Requirements

Level

Categories

Amount

Business Level

CEO & Directors

Functional Level

Finance

Marketing

HR Department

Production

Finance

Marketing

20

Operational Level

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HR Department

Production

60

Driver

Cleaner

Cook

Security

Total Employee Needed

Media

120

In our Cine Bangla television channel, there are four different departments. They are-

Finance Department

Marketing Department

HR Department

Production Department

We need some employee to run those departments. Our total number of employee is 100
including business level, functional level, operational level and 4th grade employees (driver,
securities, cleaner, cook). The distribution of the employees are given in the chart below -

Structure
There must be a perfect HRD. Without this our company will not be able to handle or manage
the potential employees. To motivate the employees a perfect salary structure is needed and this
will be done by HRD. So, Cine Bangla should develop HRD as early as possible for their own
betterment. The Organ gram of our Cine Bangla is giving below:-

CEO

MD

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CFO

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HR
Director

Marketin
Marketin
g
g
Director
Director

Salary

Accounta
Accounta
nt
nt

Sales
Executi
ve

Treasur
er

Promotion
Promotion
al
al
Manager
Manager

Recruiti
ng

Media

Producti
Producti
on
on
Director
Director

Progra
m
organiz
er
Editor

Financia
l Analist

Operation Level Employee (84)

Business level Manager

Functional level

Expectations
We wants to attract the most qualified employees and match them to jobs for which they are best
suited. Through International Human resources Department training, and labor relations
managers and specialists will find out the best workers for us for the international assignments.
Managing international employees will be very difficult task for us.
In an effort to enhance morale and productivity, limit job turnover, and help to increase
performance and improve business results, international expatriates help their firms effectively
by using their skills. Without a proper training from IHRD expatriates will not be able to match
with the various cultures. And this will create problem for them to continue their work in
different culture.

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Culture shock is a term used to describe the anxiety and feelings (of surprise, disorientation,
confusion, etc.) felt when employees have to operate within an entirely different cultural or
social environment, such as a foreign country. It grows out of the difficulties in assimilating the
new culture, causing difficulty in knowing what is appropriate and what is not. This is often
combined a dislike for or even disgust (moral or aesthetical) with certain aspects of the new or
different culture. To solve the problem of cultural shock we should have a training program for
the expatriates. Without IHRD it will be impossible to manage and organize training program for
the expatriates to overcome cultural shock.

Foreseeable & Unforeseeable Barriers

o Foreseeable Risk
As in the market lots of established television channels are already in the market. So it is
tough to do business in this industry until distinctive competencies can be made.
As, the niche market we are concentrating on is attractive enough with an emerging
segment of affluent customers, the existing competitors may also come to this area with
their new outlets.
Increasing import tax is a big threat to us. It may decrease our profitability in the long
run.

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Unpredictable political situation of the country is another threat to our business. Political
instability has always hampered business of all types in Bangladesh.
o Unforeseeable Barriers
A sudden change in government policy about tax rate on terrestrial equipment may be
an unforeseeable risk for the organization.
The natural calamities may suddenly take place and that will hinder the operation.
Economic downturn can hamper the return of investment.
Change viewers perception, lack of distinctive competencies will be an ultimate risk in
order to do business for the long run.

Market risk
Viewers demand for product may change drastically over the time. In addition to that, different
external environmental causes like political and legal issues may results in highly risky market
situation. For example, increasing inflation and fluctuating exchange rate can increase the cost of
the company. Though, we expect the demand for these services will increase step by step because
the market is realizing more value in these things as a result of education, developed mentality,
increased buying power and improved taste. These intuitions regarding the market indicate that
there are lots of risks associated.

Operational risk
The Company has only a few employees. Thus, the firm will be solely dependent on these
employees. The absence of the employees will create problem and hamper sound operations
drastically.

Credit Risk
Initially the company will need money to finance for raw materials, outlet, equipments and
vehicle. This money is expected to finance by taking loans from the bank and from our funds. So
if we encounter loss it will be tough for the company to pay back its debts.

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Liquidity Risk
According to our long term vision, we will expand our market by opening new outlets. As, in the
initial stage, our profit will not be much, to launch new outlets the company may have to take
additional loan from the banks. However, a substantial portion of asset of the company will be
pledged for bank loan. This may force the company into a short-term liquidity crisis.

Risk Calculation based on Revenue earned per year from various channels perspective:

ATN

Revenue per year

115,436

Deviation

BHK

36,934

(55,654.42)

3097414095

BTV

45,511

(47,077.42)

2216283160

BV
Ch_1
cH_I

84,437
117,130
188,678

(8,151.42)

22,847.58

24,541.58
96,089.58

81

Squared Deviation
522012064.2

66445593.67
602289312.5
9233208025

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03
DIG

80,347

DSH
ETV

84,980
113,833

(7,608.42)

ITV
NTV

28,199
130,441

(64,389.42)

RTV
Total
Mean
Total Deviation

85,135
1,111,061
92,588.42

Electronic

80,347.00

6455640409

21,244.58

57888004.17
451332321

37,852.58

4145996979
1432818065

(7,453.42)

Media

55553420.01

92,588.42

Total Squared Deviation

28,336,881,447.91

Mean Absolute Deviation

Mean Squared Deviation
Variance
Standard Deviation

on

7,715.70

2,361,406,787.33

59,532,047.92
214,673,344.30
14,651.73519

*All the amounts are in BDT and in Millions.

Television channel business is not a new concept from the aspect of Bangladesh. Locations, but
our competitive advantage is uniqueness, fight for the truth and low price compare to other
television centre. That is why we need expert manpower to make the decoration unconventional
to differentiate the program as well as the importing country from where we can import at a
significant lower price and deliver them to the customers at a relatively lower price by
maintaining the quality.
Cine Bangla Television channel will provide the viewers a complete atmosphere related with
Bangladeshi film as well as film related any information which they have never experienced
before.

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Assumptions
Start Up Investment:
The total start up requirement or investment required for opening a television channel like Cine
Bangla is about BDT 506,975,732. The total investment comes from two sources. One is from
getting debt from Bank and capital. Total start up requirement is given below.
Start Up requirement
Land & Land Development

20,000,000

Building & Flat

10,000,000

Broadcasting Equipment

262,331,088

Production Equipment

50,000,000

Electrical Equipment

52,000,000

Cassettes

10,000,000

Air-Conditioners

6,789,244

Office Equipment

25,000,000

Furniture & Fixture

15,000,000

Motor Vehicle

25,000,000

Security Deposit BSS

50,000

Security Deposit BSEC

500,000

Security Deposit BTTB

207,400

Security Deposit to Local Skynet Sattelite

2,583,000

Software

350,000

Logo

450,000

Pre-operating Expenses
Salary and Allowances

7,000,000

Travelling Expenses

900,000

Office

1,000,000

Advertising & Publicity

2,000,000

Fees and Professional Charges

500,000

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Office Refreshment

on

Electronic

Media

150,000

Repair and Maintinance of Vehicle

65,000

Office Maintinance

100,000

Inagural Expenses

4,000,000

Others

2,000,000

Cash and Bank Balance

cash in hand

1,000,000

Marcantile Bank Karwan Bazar Br.

5,000,000

Islami Bank Bangladesh Ltd.

1,000,000

IFIC Bank Ltd.

500,000

ICB Islamic Bank Ltd.

1,000,000

Standard Chartered Bank,Karwan Bazar Branch

500,000

Total Investment

506,975,732

Bank Loan:
The total amount of Bank loan is BDT 287,500,000 which is 56.71% of the total investment. The
loan amount will be collected from
Term Loan ICB Islami Bank

14

84,000,000

HSBC Bank Loan

15

176,571,487

Total Tong term Liabilities

260,571,487

Another BDT 26,928,513 can be taken from Term loan of ICB Islamic Bank at the rate of 13%
interest. The interest rate HSBC Bank loan is also 13%.

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Capital:
The total capital of this project is BDT 219,475,732 which is 43.29% of the total investment.

Total Turnover:
Total revenue can be collected in different forms of TVC. For example
Television Commercials.
Sponsorship.
Movie Sponsorship etc.

Our rate card for giving advertisement on our Television is given below.

Mid
Break in
Movie
song

Before
Movie

Position

Mid
Break in
Program

Just
Before
Movie

1st Mid
Break
Movie

2nd Mid
Break
Movie

Last Spot
Mid
Break
Movie

1st/Last
Mid
Break
Movie

3,500

4,000

5,000

7,000

6,000

7,500

6,500

6,000

7,000

8,000

10,00
0

14,00
0

12,00
0

15,00
0

13,00
0

30

9,300

10,50
0

12,00
0

15,00
0

21,00
0

18,00
0

27,00
0

22,50
0

25,50
0

19,50
0

24,00
0

40

12,00
0

14,00
0

16,00
0

20,00
0

28,00
0

24,00
0

36,00
0

30,00
0

34,00
0

26,00
0

32,00
0

Duration

Business

(Second)

Hour

10

3,000

20

Ordinary

Fixed

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50

15,00
0

17,50
0

20,00
0

25,00
0

35,00
0

30,00
0

45,00
0

37,50
0

42,50
0

32,50
0

40,00
0

60

18,00
0

21,00
0

24,00
0

30,00
0

42,00
0

36,00
0

54,00
0

45,00
0

51,00
0

39,00
0

48,00
0

Rates for Spot Advertising (Peak Hours*) in Taka

* Peak Hours are 5.00 pm to 1.00 am from Saturday to Thursday & full transmission hours of Friday and
special Days
* Business Hours are 9.55 am to 2.30 pm from Saturday to Thursday.
Requirements
15% Value Added Tax (VAT) will be charged on gross value of all advertisements.
15% Agency commission allowed to advertisement agencies enlisted with Cine Bangla.
10% Advanced Income Tax (AIT) will be deducting from agency commission.
50% Discount allowed on the above rate in off-peak hours (up to 5 pm for everyday except Friday and
special Days)
25% Discount allowed on the above rate on advertisement relating to public awareness and motivational
program put up by non profitable organization.
Rates for sponsorship of programs will vary from program to program depending on the cost of
production, telecast time, program category and will be determined through negotiation.
All payment to be paid by pay order/Accounts payee cheque in favor of Cine Bangla.

Sales growth:
The sales growth of the industry is being found by some extensive analysis of the individual
company of the industry. The sales growth of NTV is given below.

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Property, Plant and Equipment:

Our Property, plant and equipment for this particular business are.
1. Land & Land Development
2. Building & Flat
3. Broadcasting Equipment
4. Production Equipment
5. Electrical Equipment
6. Cassettes
7. Air-Conditioners
8. Office Equipment
9. Furniture & Fixture
10. Motor Vehicle

We are assuming 10% depreciation on the above property, plant and equipment on the basis of
our competitor view of taking depreciation rate.

Financial Plan

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We conducted our audit in accordance with Bangladesh Standards on Auditing (BSA). Those
standards require that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement. An audit includes examining,
on a test basis, evidence supporting the amounts and disclosures in the financial statements. An
audit also includes assessing the accounting principles used and significant statement
presentation. We believe that our audit provides a reasonable basis for our opinion.
Source of financing:
The initial spending will be part financed by the partners and part by long term loan. Among the
7 partners the CEO of the organization Nazrul Islam will provide BDT 219,475,732 which is
43.29% of the investment and the rest BDT 287,475,732 will be loaned from ICB Islami bank
for 13% interest rate. The finacing is given below.
Financing

Debt

56.71%

287,500,000

Equity

43.29%

219,475,732

Total

506,975,732

Operating Expenses:
Our operating expenses are divided into two parts.
1. Administrative expenses
2. Selling Expenses
Operating expenses for the first year is given below.

Operating Expense

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Administrative Expense
Salary & Allowances

70,000,000

Bonus

5,000,000

Director's Remuneration

3,000,000

Printing & Stationary

2,000,000

Travelling Expenses

500,000

Office Rent

6,000,000

Fees & Professional Charges

300,000

Audit Fees

125,000

Office Refreshment

3,000,000

Conveyance

80,000

Repair & Maintenance Vehicle

1,000,000

Office Maintenance

1,000,000

Telephone, mobile & Internet Bill

2,000,000

Telephone & Mobile Set Purchase

60,000

Newspaper & Periodicals

138,000

Security Service

2,000,000

Insurance Premium

600,000

Subscription & Donation

60,000

Electricity Expenses

2,500,000

Equipment Maintenance

1,500,000

Employee Provided Fund

2,500,000

Establishment Expenses

180,000

Water Bill

250,000

Satellite Rent

18,480,000

Cine Bangla Collan Tahbil

1,000,000

Software Maintenance

100,000

Registration & License Expense

50,000

Postage & Stamp

105,000

Bank Charge

150,000

Medical Expenses

200,000

Computer Accessories

350,000

Drinking Water Expenses

300,000

Air-Condition Maintenance

1,500,000

Refrigerator

45,000

Power, Fuel & Gas

1,400,000

Depreciation on fixed asset

44,612,033

Amortization on Pre-operating Expense

1,771,500

81

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Fees to BTRC

on

Electronic

Media

250,000

Miscellaneous Expense

2,000,000
176,106,533

Selling Expense
Salary & Marketing Dept.

3,000,000

Bonus

300,000

Administrative Expenses

15,000,000

Agency Commission

12,000,000

Promotional Expense

10,000,000
40,300,000

Total Operating Expenses

216,406,533

Sensitivity analysis:
After calculation the standard deviation we can estimate the revenue. From the standard
deviation, we can estimate the risk of getting the revenue. After calculating the risk we make an
assumption which is presented in sensitivity analysis.
For Income statement: Sensitivity Analysis has been done to show how changes in demand for
Television channel may affect the sales figure. Therefore three different scenarios is being shown
with worst case having 10% annual turnover growth and best case having 20% annual sales
growth. Turnover growth for most likely is 15% initially and then it gradually increased a cash
flows generated was invested. Here the worst case, the most likely case and the best case is given
below.

Worst Case

Turnover
Less: Cost of

30-Jun-11

30-Jun-12

30-Jun-13

30-Jun-14

30-Jun-15

549,663,3
28

604,629,6
61

665,092,6
27

731,601,8
90

804,762,0
79

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sales

328,500,0
00

361,350,0
00

397,485,0
00

437,233,5
00

480,956,8
50

Gross Profit

221,163,3
28

243,279,6
61

267,607,6
27

294,368,3
90

323,805,2
29

Total Operating
Expense
Profit/(loss)
from
operation

232,350,0
33

255,585,0
37

281,143,5
40

309,257,8
94

340,183,6
84

(11,186,7
05)

(12,305,3
76)

(13,535,9
13)

(14,889,5
05)

(16,378,4
55)

Interest
expense

10,166,66
7

11,183,33
3

12,301,66
7

13,531,83
3

14,885,01
7

Earning Befor
tax

(21,353,3
72)

(23,488,7
09)

(25,837,5
80)

(28,421,3
38)

(31,263,4
72)

tax

(8,541,34
9)

(9,395,48
4)

(10,335,0
32)

(11,368,5
35)

(12,505,3
89)

(12,812,
023)

14,093,22 15,502,54 17,052,80 18,758,08

5
8
2
2
10%
10%
10%
10%

Profit/ (loss)
after tax
Sales Growth

Media

In the worst case scenario, we have taken 10% sales growth. (After analysis of the market, we
found this growth rate). The next table will show the most likely to happen with our business
where the sales growth is 15%.

Most Likely
30-Jun-11

30-Jun-12

30-Jun-13

30-Jun-14

30-Jun-15

Turnover

657,000,0
00

755,550,0
00

868,882,5
00

999,214,8
75

1,149,097,1
06

Less: Cost of
sales

328,500,0
00

377,775,0
00

434,441,2
50

499,607,4
38

574,548,55
3

Gross Profit

328,500,0
00

377,775,0
00

434,441,2
50

499,607,4
38

574,548,55
3

232,350,0
33

267,202,5
38

307,282,9
19

353,375,3
57

406,381,66
0

96,149,96
7

110,572,4
62

127,158,3
31

146,232,0
81

168,166,89
3

Total Operating
Expense
Profit/(loss)
from
operation
Interest

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expense

10,166,66
7

11,691,66
7

13,445,41
7

15,462,22
9

17,781,564

Earning Befor
tax

85,983,30
0

98,880,79
5

113,712,9
14

130,769,8
52

150,385,32
9

tax

34,393,32
0

39,552,31
8

45,485,16
6

52,307,94
1

60,154,132

51,589,9
80

59,328,47 68,227,74 78,461,91

7
9
1
90,231,198
15%
15%
15%
15%

Profit/ (loss)
after tax
Sales Growth

Media

By calculating the standard deviation, the best likely case, where the sales growth is taken 20%
increases annually. The best case of income statement is given below.

Best
Case
30-Jun-11

30-Jun-12

30-Jun-13

30-Jun-14

30-Jun-15

Turnover

764,336,
672

917,204,
006

1,100,644,8
08

1,320,773,7
69

1,584,928,5
23

Less: Cost of
sales

328,500,
000

394,200,
000

473,040,000

567,648,00
0

681,177,60
0

Gross Profit

435,836,
672

523,004,
006

627,604,808

753,125,76
9

903,750,92
3

Total Operating
Expense
Profit/(loss)
from
operation

232,350,
033

278,820,
040

334,584,048

401,500,85
7

481,801,02
9

203,486,
639

244,183,
967

293,020,760

351,624,91
2

421,949,89
4

Interest
expense

10,166,6
67

12,200,0
00

14,640,000

17,568,000

21,081,600

Earning Befor
tax

193,319,
972

231,983,
967

278,380,760

334,056,91
2

400,868,29
4

tax

77,327,9
89

92,793,5
87

111,352,304

133,622,76
5

160,347,31
8

115,991,
983

139,190,
200,434,14 240,520,97
380
167,028,456 7
7
20%
20%
20%
20%

Profit/ (loss)
after tax
Sales Growth

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For Cash Flow Statement: Sensitivity Analysis has been done to show how change in demand
for Television channel may affect the sales figure. Therefore two different scenarios are being
shown with worst case having 10% annual sales growth initially and best case having 20%
annual sales growth initially. Sales growth for base case is 15% initially and then it gradually
increased a cash flows generated was invested.

Worst
Case
30-Jun-11

30-Jun-12

30-Jun-13

30-Jun-14

30-Jun-15

549,663,32
8

604,629,6
61

665,092,626
.88

731,601,8
90

804,762,0
79

Payment to suppliers

328,500,00
0

361,350,0
00

397,485,000

437,233,5
00

480,956,8
50

Operating Expenses

232,350,03
3

255,585,0
37

281,143,540

309,257,8
94

340,183,6
84
12,505,38
9

Cash Flows From

Operating Activities
Receipts
Collection from customers
Payments

Payment of Tax

8,541,349

9,395,484

10,335,032

11,368,53
5

Depreciation expense

(44,612,033
)

(49,073,2
37)

(53,980,560
)

(59,378,6
16)

(65,316,4
78)

24,883,979

27,372,37
7

30,109,615

33,120,57
6

36,432,63
4

Net cash generated

from operating activities
Cash Flows From
Investing Activities

Advances for rent

Licensing, Patents & Reg.

(1,000,000)
(18,480,000
)

Office decorations
(100,000)

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Purchase of Property,
Equipment & Van

(476,120,33
2)

Net cash used in

Investing activities
Cash Flows From
Financing Activities

(495,700,33
2)

Loan repaid
Net cash generated/
used from Financing
activities

(39,200)

(39,200)

(39,200)

(39,200)

(39,200)

(39,200)

(39,200)

(39,200)

(39,200)

(39,200)

Net cash outflows/

inflows for the year

(470,855,55
3)

27,333,17
7

30,070,415

33,081,37
6

36,393,43
4

Table: Worst case scenario for pro forma cash flow statement

Most Likely
30-Jun-11

30-Jun-12

30-Jun-13

30-Jun-14

30-Jun-15

755,550,0
00

868,882,5
00

999,214,8
75

1,149,097,
106

Cash Flows From

Operating Activities
Receipts
Collection from customers

657,000,0
00

Payments

Payment to suppliers

328,500,0
00

377,775,0
00

434,441,2
50

499,607,4
38

574,548,55
3

Operating Expenses

232,350,0
33

267,202,5
38

307,282,9
19

353,375,3
57

406,381,66
0

34,393,32
0

39,552,31
8

45,485,16
6

52,307,94
1

60,154,132

(44,612,03

(51,303,8

(58,999,4

(67,849,3

(78,026,72

Payment of Tax
Depreciation expense

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Net cash generated

from operating activities
Cash Flows From
Investing Activities

Advances for rent

Licensing, Patents &
Reg.

on

Electronic

Media

3)

38)

14)

26)

5)

106,368,6
80

122,323,9
82

140,672,5
79

161,773,4
66

186,039,48
6

(1,000,000
)
(18,480,00
0)

Office decorations
(100,000)
Purchase of Property,
Equipment & Van

(476,120,3
32)

Net cash used in

Investing activities
Cash Flows From
Financing Activities

(495,700,3
32)

Loan repaid
Net cash generated/
used from Financing
activities

(39,200)

(39,200)

(39,200)

(39,200)

(39,200)

(39,200)

(39,200)

(39,200)

(39,200)

(39,200)

Net cash outflows/

inflows for the year

(389,370,8
52)

122,284,7
82

140,633,3
79

161,734,2
66

186,000,28
6

Table: Most likely scenario for pro forma Cash flow statement

Best
Case
30-Jun-11

30-Jun-12

30-Jun-13

30-Jun-14

30-Jun-15

Cash Flows From

Operating Activities
Receipts
Collection from customers
Payments

764,336,6
72

917,204,0
06
-

Payment to suppliers

81

1,100,644,
808

1,320,773,
769

1,584,928,
523

GROUP
03

Business Plan

MGT-489 | Strategic

on

Electronic

Media

328,500,0
00

394,200,0
00

473,040,00
0

567,648,00
0

681,177,60
0

Operating Expenses

232,350,0
33

278,820,0
40

334,584,04
8

401,500,85
7

481,801,02
9

Payment of Tax

77,327,98
9

92,793,58
7

111,352,30
4

133,622,76
5

160,347,31
8

Depreciation expense

(44,612,03
3)

(53,534,4
40)

(64,241,32
8)

(77,089,59
3)

(92,507,51
2)

126,158,6
50

151,390,3
80

181,668,45
6

218,002,14
7

261,602,57
7

Net cash generated

from operating activities
Cash Flows From
Investing Activities

Advances for rent

Licensing, Patents &
Reg.

(1,000,000
)
(18,480,00
0)

Office decorations
(100,000)
Purchase of Property,
Equipment & Van

(476,120,3
32)

Net cash used in

Investing activities
Cash Flows From
Financing Activities

(495,700,3
32)

Loan repaid
Net cash generated/
used from Financing
activities

(39,200)

(39,200)

(39,200)

(39,200)

(39,200)

(138,900)

(138,900)

(138,900)

(138,900)

(138,900)

Net cash outflows/

inflows for the year

(369,680,5
82)

151,251,4
80

181,529,55
6

217,863,24
7

261,463,67
7

Table: Best case scenario for pro forma Cash flow statement

Income Statement
81

Business Plan

MGT-489 | Strategic

GROUP
03

on

Electronic

11.3 Pro Forma Income Statement:

Notes
1

30-Jun-11
657,000,000

30-Jun-12
755,550,000

30-Jun-13
868,882,500

30-Jun-14
999,214,875

328,500,000

264,442,500

217,220,625

199,842,975

328,500,000

491,107,500

651,661,875

799,371,900

232,350,033

230,245,533

285,505,386

338,136,171

96,149,967

260,861,967

366,156,489

461,235,729

10,166,667

9,944,444

9,729,630

9,521,975

Earning Befor tax

85,983,300

250,917,522

356,426,860

451,713,753

tax
Profit/ (loss) after
tax

34,393,320

100,367,009

142,570,744

180,685,501

51,589,980

150,550,513

213,856,116

271,028,252

30-Jun-11
657,000,00
0

30-Jun-12
755,550,00
0

30-Jun-13
868,882,50
0

30-Jun-14
999,214,87
5

229,950,00
0

264,442,50
0

304,108,87
5

349,725,20
6

70,000,00
0
5,000,00
0
3,000,00
0
2,000,00
0
500,00
0
6,000,00
0
300,00
0
125,00
0
3,000,00
0
80,00

77,000,00
0
5,250,00
0
3,150,00
0
2,100,00
0

84,700,00
0
5,512,50
0
3,307,50
0
2,205,00
0
551,25
0
6,615,00
0
330,75
0
137,81
3
3,307,50
0
88,200

93,170,00
0
5,788,12
5
3,472,87
5
2,315,25
0
578,81
3
6,945,75
0
347,28
8
144,70
3
3,472,87
5
92,610

Turnover
Less: Cost of sales
Gross Profit
Total Operating
Expense
Profit/(loss) from
operation

Interest expense

Notes of Pro Forma Income Statement:

NOTES

Total Turnover

Cost Of sales

cost of program

Operating Expense

Administrative Expense
Salary & Allowances
Bonus
Director's Remuneration
Printing & Stationary
Travelling Expenses
Office Rent
Fees & Professional Charges
Audit Fees
Office Refreshment
Conveyance

81

525,000
6,300,00
0
315,000
131,250
3,150,00
0
84,000

Media

GROUP
03

Business Plan

MGT-489 | Strategic

Repair & Maintenance Vehicle

Office Maintenance
Telephone, mobile & Internet
Bill
Telephone & Mobile Set
Purchase
Newspaper & Periodicals
Security Service
Insurance Premium
Subscription & Donation
Electricity Expenses
Equipment Maintenance
Employee Provided Fund
Establishment Expenses
Water Bill
Satellite Rent
Cine Bangla Collan Tahbil
Software Maintained
Registration & License Expense
Postage & Stamp
Bank Charge
Medical Expenses
Computer Accessories
Drinking Water Expenses
Air-Condition Maintenance
Refrigerator
Power, Fuel & Gas
Depreciation on fixed asset

0
1,000,00
0
1,000,00
0
2,000,00
0
60,00
0
138,00
0
2,000,00
0
600,00
0
60,00
0
2,500,00
0
1,500,00
0
2,500,00
0
180,00
0
250,00
0
18,480,00
0
1,000,00
0
100,00
0
50,00
0
105,00
0
150,00
0
200,00
0
350,00
0
300,00
0
1,500,00
0
45,00
0
1,400,00
0
44,612,03
3

81

on

Electronic

1,050,00
0
1,050,00
0
2,100,00
0

1,102,50
0
1,102,50
0
2,205,00
0

1,157,62
5
1,157,62
5
2,315,25
0

63,000

66,150

69,458

152,14
5
2,205,00
0
661,50
0

159,75
2
2,315,25
0
694,57
5

63,000

66,150

69,458

2,625,00
0
1,575,00
0
2,625,00
0

2,756,25
0
1,653,75
0
2,756,25
0
198,45
0
275,62
5
20,374,20
0
1,102,50
0
110,25
0

2,894,06
3
1,736,43
8
2,894,06
3
208,37
3
289,40
6
21,392,91
0
1,157,62
5
115,76
3

55,125

57,881

1,575,00
0

115,76
3
165,37
5
220,50
0
385,87
5
330,75
0
1,653,75
0

121,55
1
173,64
4
231,52
5
405,16
9
347,28
8
1,736,43
8

47,250

49,613

52,093

1,470,00
0
44,612,03
3

1,543,50
0
84,762,86
3

1,620,67
5
120,898,61
0

144,900
2,100,00
0
630,000

189,000
262,500
19,404,00
0
1,050,00
0
105,000
52,500
110,250
157,500
210,000
367,500
315,000

Media

Business Plan

MGT-489 | Strategic

GROUP
03

Amortization on
Pre-operating Expense
Fees to BTRC
Miscellaneous Expense
Total

1,771,50
0
250,00
0
2,000,00
0
176,106,53
3

1,594,35
0
262,500
2,100,00
0
185,915,53
3

on

Electronic

1,434,91
5
275,62
5
2,205,00
0
236,742,38
6

1,291,42
4
289,40
6
2,315,25
0
284,496,87
1
3,993,00
0
399,30
0
19,965,00
0
15,972,00
0
13,310,00
0
53,639,30
0
338,136,17
1
3,500,00
0
6,021,97
5
9,521,97
5

Selling Expense
Salary & Marketing Dept.
Bonus
Administrative Expenses
Agency Commission
Promotional Expense
Total
Total Operating Expenses
Interest Expenses
Term Loan ICB Islami Bank
HSBC Bank Loan
Interest Expenses

Total

3,000,00
0
300,00
0
15,000,00
0
12,000,00
0
10,000,00
0
40,300,00
0
216,406,53
3

16,500,00
0
13,200,00
0
11,000,00
0
44,330,00
0
230,245,53
3

3,630,00
0
363,00
0
18,150,00
0
14,520,00
0
12,100,00
0
48,763,00
0
285,505,38
6

3,500,00
0
6,666,66
7
10,166,66
7

3,500,00
0
6,444,44
4
9,944,44
4

3,500,00
0
6,229,63
0
9,729,63
0

81

3,300,00
0
330,000

Media

GROUP
03

Business Plan

MGT-489 | Strategic

on

Electronic

Media

Cash Flow Statements

11.4 Pro Forma Cash Flow Statement:
30-Jun-11

30-Jun-12

30-Jun-13

30-Jun-14

30-Jun-15

755,550,0
00

868,882,5
00

999,214,8
75

1,149,097,
106

Cash Flows From

Operating Activities
Receipts
Collection from customers

657,000,0
00

Payments

328,500,0
00

377,775,0
00

434,441,2
50

499,607,4
38

574,548,55
3

Operating Expenses

232,350,0
33

267,202,5
38

307,282,9
19

353,375,3
57

406,381,66
0

Payment of Tax

34,393,32
0

39,552,31
8

45,485,16
6

52,307,94
1

60,154,132

Depreciation expense

(44,612,03
3)

(51,303,8
38)

(58,999,4
14)

(67,849,3
26)

(78,026,72
5)

106,368,6
80

122,323,9
82

140,672,5
79

161,773,4
66

186,039,48
6

(39,200)

(39,200)

(39,200)

(39,200)

Payment to suppliers

Net cash generated

from operating activities
Cash Flows From
Investing Activities

Advances for rent

Licensing, Patents &
Reg.

(1,000,000
)
(18,480,00
0)

Office decorations
(100,000)
Purchase of Property,
Equipment & Van

(476,120,3
32)

Net cash used in

Investing activities
Cash Flows From
Financing Activities

(495,700,3
32)

Loan repaid

(39,200)

81

GROUP
03

Business Plan

MGT-489 | Strategic

on

Electronic

Media

Net cash generated/

used from Financing
activities

(39,200)

(39,200)

(39,200)

(39,200)

(39,200)

Net cash outflows/

inflows for the year

(389,370,8
52)

122,284,7
82

140,633,3
79

161,734,2
66

186,000,28
6

Balance Sheet
11.5 Pro Forma Balance Sheet:
Notes
Non Current Asset
Property, Plant &
Equipment
Long Term Security
Deposit
Intangible Asset
Pre-Operating Expenses
Total Non Current Asset
Current Assets
Receivable
Advances, Deposits
& Pre-payments
Cash & Bank Balance
Total Current Assets

4
5
6
7

8
9
10

Total Assets
Current Liabilities
Short Term bank Loan
Accounts Payable
Accrued Expense
Other Payable
Total Current Liabilities
Long Term Liabilities
Term Loan ICB Islami
Bank
HSBC Bank Loan
Total Tong term Liabilities
Total Liabilities
Owner's Equity
Capital
Add: Net Profit
Total Owner's Equity

11
12
13

14
15

30-Jun-11

30-Jun-12

431,508,299

391,357,469

355,221,722

322,699,550

3,340,400

3,340,400

3,340,400

3,340,400

720,000
15,943,500
451,512,199

648,000
14,349,150
409,695,019

583,200
12,914,235
372,059,557

524,880
11,622,812
338,187,641

164,250,000

262,800,000

381,060,000

438,219,000

8,000,000

10,400,000

11,440,000

13,156,000

9,000,000
181,250,000

170,142,448
443,342,448

475,913,492
868,413,492

1,137,642,603
1,589,017,603

632,762,199

853,037,467

1,240,473,049

1,927,205,244

8,000,000
82,125,000
11,000,000

4,800,000
92,554,875
12,100,000

2,880,000
76,027,219
11,260,000

1,728,000
69,945,041
12,386,000

101,125,000

109,454,875

90,167,219

84,059,041

84,000,000

60,500,000

77,000,000

73,500,000

176,571,487
260,571,487
361,696,487

313,056,347
373,556,347
483,011,222

639,973,982
716,973,982
807,141,201

1,116,582,603
1,190,082,603
1,274,141,644

219,475,732
51,589,980
271,065,712

219,475,732
150,550,513
370,026,245

219,475,732
213,856,116
433,331,848

219,475,732
271,028,252
490,503,984

81

30-Jun-13

30-Jun-14

GROUP
03

Business Plan

MGT-489 | Strategic

Total Liabilities
& Owner's Equity

632,762,199

853,037,467

on

1,240,473,049

Electronic

Media

1,764,645,628

Notes of Pro Forma Balance Sheet:

NOTES
5

30-Jun-11
Long Term Security Deposit
Security Deposit BSS
Security Deposit BSEC
Security Deposit BTTB
Security Deposit to
Local Skynet Satellite

Total
Intangible Asset
Software
Logo
Total Intangible Asset
Less: Amortization
Net Book Value of Intangible Asset
Pre-operating Expenses
Salary and Allowances
Travelling Expenses
Office
Advertising & Publicity
Fees and Professional Charges
Office Refreshment
Repair and Maintenance of Vehicle
Office Maintenance
Inaugural Expenses
Others
Total Pre-operating Expenses
Less: Amortization

30-Jun-12

30-Jun-13

30-Jun-14

50,000

50,000

50,000

50,000

500,000

500,000

500,000

500,000

207,400

207,400

207,400

207,400

2,583,000

2,583,000

2,583,000

2,583,000

3,340,400

3,340,400

3,340,400

3,340,400

350,000

350,000

350,000

350,000

450,000

450,000

450,000

450,000

800,000

720,000

648,000

583,200

80000

72000

64800

58320

720,000

648,000

583,200

524,880

7,000,000

7,000,000

7,000,000

7,000,000

900,000

900,000

900,000

900,000

1,000,000

1,000,000

1,000,000

1,000,000

2,000,000

2,000,000

2,000,000

2,000,000

500,000

500,000

500,000

500,000

150,000

150,000

150,000

150,000

65,000

65,000

65,000

65,000

100,000

100,000

100,000

100,000

4,000,000

4,000,000

4,000,000

4,000,000

2,000,000

2,000,000

2,000,000

2,000,000

17,715,000

15,943,500

14,349,150

12,914,235

1771500

1594350

1434915

1291423.5

Net Book value of

Pre-operating Expenses

15,943,500

14,349,150

12,914,235

11,622,812

Receivable

164,250,000

188,887,500

217,220,625

249,803,719

Advances, deposits and

Pre-payments
2,000,000

1,800,000

1,620,000

1,458,000

Advance Against salary

Advance for Programs

3,000,000

3,300,000

3,630,000

3,993,000

Advances for purchase

spare parts and stationary

1,000,000

1,100,000

1,210,000

1,331,000

Other advances

2,000,000

2,200,000

2,420,000

2,662,000

81

GROUP
03

Business Plan

MGT-489 | Strategic

Total Advances, deposits

and Pre-payments

10

Cash and Bank Balance

cash in hand
Marcantile Bank Karwan Bazar Br.
Islami Bank Bangladesh Ltd.
IFIC Bank Ltd.
ICB Islamic Bank Ltd.
Standard Chartered
Bank,Karwan Bazar Branch

11

12
13

Total Cash and Bank Balance

Short Term Bank Loan
Mercantile Bank Limited
Islami Bank Bangladesh Limited
Total Short term Bank Loan
Accounts Payble
Accrued Expenses
Salary and Allowance
District Correspondence
salary and allowance

14

15

UNB
APTN
BSS
SNTV
Office Rent
Electricity
WASA
Loral Skynet
Western Cleaning Service
Establishment
Audit fee
Total Accrued Expenses
Term Loan ICB Islami Bank
Interest Paid
Capital Paid
Total Interest expense
HSBC Bank Loan
Interest Paid
Capital Paid
Total Interest expense

on

Electronic

Media

8,000,000

8,400,000

8,880,000

9,444,000

1,000,000

1,150,000

1,322,500

1,520,875

5,000,000

5,750,000

6,612,500

7,604,375

1,000,000

1,150,000

1,322,500

1,520,875

500,000

575,000

661,250

760,438

1,000,000

1,150,000

1,322,500

1,520,875

500,000

575,000

661,250

760,438

9,000,000

10,350,000

11,902,500

13,687,875

5,000,000

3,000,000

1,800,000

1,080,000

3,000,000

1,800,000

1,080,000

648,000

8,000,000

4,800,000

2,880,000

1,728,000

82,125,000

92,554,875

76,027,219

69,945,041

5,000,000

5,500,000

4,000,000

4,400,000

400,000

440,000

484,000

532,400

100,000

110,000

121,000

133,100

200,000

220,000

242,000

266,200

150,000

165,000

181,500

199,650

200,000

220,000

242,000

266,200

1,500,000

1,650,000

1,815,000

1,996,500

1,000,000

1,100,000

1,210,000

1,331,000

500,000

550,000

605,000

665,500

1,250,000

1,375,000

1,512,500

1,663,750

100,000

110,000

121,000

133,100

400,000

440,000

484,000

532,400

200,000

220,000

242,000

266,200

11,000,000

12,100,000

11,260,000

12,386,000

87,500,000

84,000,000

80,500,000

77,000,000

39,200.0

39,200.0

39,200.0

39,200.0

3,460,800

3,460,800

3,460,800

3,460,800

3,500,000

3,500,000

3,500,000

3,500,000

200,000,000

193,333,333

186,888,889

180,659,259

933,333

902,222

872,148

843,077

5,733,333

5,542,222

5,357,481

5,178,899

6,666,667

6,444,444

6,229,630

6,021,975

81

Business Plan

MGT-489 | Strategic

GROUP
03

on

Electronic

Media

Depreciation Schedule:
Cost

Particulars

Balance as
at

Addition
During
the Year

01-Jul-10

Land & Land

Development
Building & Flat
Broadcasting
Equipment
Production
Equipment
Electrical
Equipment
Cassettes
Air-Conditioners
Office
Equipment
Furniture &
Fixture
Motor Vehicle
Total

Depreciation

Balance as
at

Rate
of
Depre
ciation

Balanc
e at

30-Jun-11

01-Jul10

Addition
During
the Year

Balance
as at

Written Down
Value as on

30-Jun-11

30-Jun-11

20,000,000

20,000,000

20,000,000

10,000,000

10,000,000

10,000,000
236,097,979

262,331,088

262,331,088

10%

26,233,109

26,233,10
9

50,000,000

50,000,000

10%

5,000,000

5,000,000

45,000,000

52,000,000

52,000,000

10%

5,200,000

5,200,000

46,800,000

10,000,000
6,789,244

10,000,000
6,789,244

10%
10%

1,000,000
678,924

1,000,000
678,924

9,000,000
6,110,320

25,000,000

25,000,000

10%

2,500,000

2,500,000

22,500,000

15,000,000

15,000,000

10%

1,500,000

1,500,000

13,500,000

25,000,000

25,000,000

10%

2,500,000

2,500,000

22,500,000

44,612,033

431,508,299

476,120,332

476,120,332

81

Business Plan

MGT-489 | Strategic

GROUP
03

on

Electronic

Media

Capital Budgeting Technique

Capital budgeting (or investment appraisal) is the planning process used to determine whether a
firm's long term investments such as new machinery, replacement machinery, new plants, new
products, and research development projects are worth pursuing. It is budget for major capital, or
investment, expenditures.
Many formal methods are used in capital budgeting, including the techniques such as

Accounting rate of return

Net present value

Profitability index

Internal rate of return

Modified internal rate of return

Equivalent annuity

These methods use the incremental cash flows from each potential investment, or project
Techniques based on accounting earnings and accounting rules are sometimes used - though
economists consider this to be improper - such as the accounting rate of return, and "return on
investment." Simplified and hybrid methods are used as well, such as payback period and
discounted payback period.
Payback Period:

81

GROUP
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Business Plan

MGT-489 | Strategic

on

Electronic

Media

Payback Period does not consider time value of money when providing an answer whereas with
Discounted Payback Period we get to see the real value of cash inflows when they are measured
in today's amount of money as these are discounted at an interest rate called the Discount Rate.
We get to see the number of years required to recoup the initial cash outlay or our investment.
The formula for payback period is given below.

30-Jun-11

30-Jun-12

30-Jun-13

30-Jun-14

30-Jun-15

30-Jun-16

30-Jun-17

Cash Flows

(389,370,852)

122,284,782

140,633,379

161,734,266

186,000,286

213,906,209

245,998,020

Total cash Flows

681,186,090

Total Investment

506,975,732

Total cash Flows

before year 7
Cash Flow at year
7
Need to recover
At year 7
Payback period

435,188,070
245,998,020
71,787,662
0.291822112
6.29 years

Payback Period= 6 years and 105 days.

Discounted Payback Period:
We take a look into the way Discounted Payback Period or DPBP is used to decide financial
viability of an investment. Here you will find a definition, formula, example, and calculation
with Discounted Payback Period along with a handy calculator. For calculating discounted
payback period, it is important to calculate Weighted Average Cost of Capital.
Weighted Average Cost of Capital
In calculating WACC we will consider the weights based on initial investment of the operation of
our plant. Our cost of debt will be the straight interest rate of bank minus the tax rate which is
8%-2% = 6%. We will calculate the cost of equity by using the growth rate model. We assumed
that the growth rate of dividend will be 10%. And at present our value for share will be the tk

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100. So cost of capital will be 12%. Our weight for debt and equity will be 56.71% and 43.29%.
In total the WACC will be 12.08%.
WACC =% of equity * cost of equity + % of debt * cost of deb
= (43.29%*0.12) + (53%*0.13)
=12.08%
30-Jun-11

Discounted cash
flow

(389,370,852)

Total Discounted
cash flows

565,801,29
5

Initial Investment

506,975,73
2

Total Discounted cash

Flows
before year 7

346,316,98
0

Discounted Cash
Flow at year 7

219,484,31
5

Need to recover
At year 7
Discounted
Payback period

30-Jun-12
109,104,909

30-Jun-13

30-Jun-14

30-Jun-15

30-Jun-16

30-Jun-17

125,475,892

144,302,522

165,953,146

190,851,364

219,484,315

160,658,75
2
0.7
3
6.73 years

Discounted Payback Period= 6 Years and 266 days.

Net Present Value (NPV):
Our total required investment is BDT 506,975,732. We are estimating we will make break even
within 7 years. Our total investment will be returned in 6.73 years. Basically our payback period
is 6.29 years. We estimate our turnover not on quantity basis; we estimated our revenue on per
minute basis. Thats why we are unable to find out the breakeven point, but we can estimate, how
low it needs to get return our investment. As far as Payback period is concerned, our payback
period is 6.73 years and our Net Present Value (NPV) is BDT 58,825,563. The positive NPV
represents, we have a greater chance to make profit, by getting a positive NPV, and our investor
will go for investing in this project. NPV calculation is given below.

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MGT-489 | Strategic

Total cash Flows

681,186,090

Total Discounted
cash flows

565,801,295

Initial Investment

506,975,732

on

Electronic

Media

58,825,563

NPV

Long term Sustainability

After discussing the strategic plan form various aspects, it can be expected that Cine Bangla will
be able to sustain in the long run because of its ability of offering more value for the money spent
by the viewers by providing them with a various movies and movie related shows accompanied
with superior service within convenient reach. In long run the Channel can even be offered at a
more competitive price for business customer. The existing and future competencies of our
skilled HR will be the key to survival of the company in the long run. Another reason behind this
expectation is our strategy of capitalizing on the customers. Our employees will be instructed to
try to build long term relationship with the customers, which will help us to have advantage of
unique program. As a result, hopefully the viewers will stick to the company for repeat purchases
over long period of time helping the company to exist in the market for long. Therefore we will
be able to create a trustworthy brand name in the market and step towards our before stated
vision of spreading all over the country through several programs. Sustainable Growth rate for
this television channel is given below.
Projected after tax profit
Projected Revenue
Target Total Asset
Target Debt.
Target Equity
Dividend payout Ratio
Debt. To equity ratio
Asset to sales ratio
Profit margin
Sustainable Growth Rate

103,765,877.24
1,321,461,672.19
1,927,205,244.03
1,274,141,644.25
490,503,984.01
2.59761732
1.458389059
0.078523562
24.024%

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Conclusion
After analyzing all the aspects of the business, it can be concluded that the business has high
potentiality to survive and even grow further. However, the success of the business will be
mainly subject to the ability of our marketing troop to attract the customers and position the
television channel as a renowned and trust worthy bran. Though the discounted payback period is
more than 7 years, but the opportunity in the industry of gaining profit is very. Due to high initial
investment, it is getting higher time to make Net present value positive. As a pioneer in the
Bengali film industry, we can also get subsidies from government.

Our Viewers will get to watch new or old film through this channel. They will also get the information
about the film star through various shows which will be telecasted in Cine Bangla. Viewers will also get
the information from various shows about the release of upcoming film, the market of Bengali film, the
investment and return of every film, the box office result of each film, the cinema hall related information
etc. Cine Bangla will also try to produce Bengali film and wants to promote Bengali film for viewers of
the world.

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