Wing & Prayer

Parth Sheth, 10118382. IBM.

Table of Contents

Sr.No
1

Title
Executive Summery

Page Number
3

Introduction

Problems & Statements

Data Analysis

Key Decision Criteria

Alternatives Analysis

Recommendations

Executive Summery
Stefan a Canadian university student worked in bungee jumping Company at amusement park in United States for two and a half month as and has experience of more than 150 jumps during that time period. He wants to start his own bungee jumping company. But, was facing many problems. The major issue was finance. But he managed to get it somehow. Further he has decided to start his business as a partnership firm. So he had entered in partnership contract with his friend Zach and decided to share profit and loss in ratio of 50-50 percentage. Finally they have started to make the business plans, strategies, price, costing and many more. They have also decided two places in Ontario where they can start their business. But, there was only confusion of when to implement the project. Overall it is recommended to start the business as soon as possible in current summer so that they can acquire the money and market. And repay all debts.

Introduction
Bungee jumping is a sport brought in modern world by group of students of Oxford University during 1960. Bungee jumping become a commercial curiosity sport during 1988 in New Zealand where ancient vines were replaced with modern manufactured fiber cords tested to withstand more than 1361 kilograms and were bamboo pole towers were replaced with bridges spanning deep river gorges. Day by day bungee jumping has become a popular sport in United State. There were only 20 companies during in 1991 offering this sport. But, there was drastic rice in companies offering this sport in 1992 which was about 200 companies and further it had go 400 companies in future years. There was not only increase in the number of companies but peoples participation in sport. During 1992, 1.5 million Americans experienced thrill of bungee jumping and spent $100 million. Further it has showed an increasing graph.

Problems Statement
Problems are part of business and it acts as a hurdle to every business. Capital Science Stefan was starting a new business; the biggest problem that he faced was Capital. As Stefan was a student return Canadian University student he can get $3000 as interest-free loan. But, to qualify for that loan there were many criteria. He can even acquire loan from different associations. But they even cost premium and extra fees. He can also receive money from his parents but they what their money to be repaid before summers. Further to build some more capital he decided to be in partnership business with his friend Zach Thompson. Place There was a big confusion between Stefan and Zach about where to start the business. At Grana Bend, where then can acquire the crowd of Western Fair London, Ontario or Zurich ben. Time As it is said time is money Stefan and Zach face the major problem of time. They cant run their business during winters so, summer is the only season for them to acquire the profit and start the business. Whereas, on the other side Stefan had very few time to repay his loan. So to start business in such a short time can be a problem for them. Government Rules & Regulation Since Stefan is starting his business in Ontario, Canada, special rules and regulation are placed by Ontario government for bungee jumping companies. Special code of conduct of 40 pages is made by govern. Which companies have to follow? So, this may be a hurdle for Stefan to start the business in Ontario. So this all above are the problems faced by Stefan to start the business and which must be overcome as soon as possible. To run the business smoothly.

Data Analysis
Source of data Secondary data As the data is secondary there are various internal and external factors mentioned by the researcher. That can be further illustrated as a SWOT ANALYSIS. Strength Science Stefan has two and half month of experience of bungee jumping at amusement park in United State. So he has a complete idea and knows each and every technique of bungee jumping. This act as strength for him to start new business. Weakness The major weakness of Stefan is Capital. He doesnt have enough capital to start business. Capital act as a major part of business. Without capital business doesnt exist. So, for capital he has to borrow money from different association and friends. This act as major weakness for business. Opportunities As per the external environment research Stefan get various opportunity that he can grab like Return to Canada University student loan, and loan from Youth venture capital program with minimum premium. Threats Ever business have competitor and they are the biggest threat to business. This is the same case of Stefan, there are also various stress faced by him from government by implementing new laws and by making 40 pages code of conduct which Stefan have to follow before starting the business3. So this is the various internal and external environments that Stefan has to accept and face wile starting a new business.

Key Decision Criteria

There are various decision should be taken by Stefan before starting a business. Finance Every business requires finance to run business. From where the finance will be generated is the most important decision should be done by Stefan. Place Where to start the business? After starting the business money will recover if business is started at that place? If yes then the place is affordable for the entrepreneur and if Not then what is the alternative option. This decision is done by Stefan before selecting the place for business. Labor Labor are the real asset of the company. So type of labor skilled or unskilled, how much they should be paid and what is the number of labor they require. This decision should be cleared by the entrepreneur. Others There infinite number of decision done in business. Some of them are name of the business, what type of partnership bond they want, alternative plane during emergency and many more.

Alternatives Analysis
Evaluation of different choices available for achieving an objective usually require cost benefit analysis life cycle costing and sensitivity analysis which is also called as alternative analysis. Every business ma before investing such a large amount in business should have to do alternative analysis for his business. In case of Stefan he have to make the future estimation of profit so, he can get a clear picture to invest or go for alternative plan

Recommendations
I recommend them to start their business as soon as possible in this summer so they can they can earn some money and clear off their debts. Even I suggest them to start with skimming pricing strategy. So, that by keeping less price of sport they can acquire huge customers and can reach their breakeven soon. Further making posters they can even provide refreshment drink to people. And can also provide some discount for group. So that they can acquire more customers and more profit.