1.2, Products “B.A Bookstore” will offer a wide range of used books in many fields such as: economics, technology, science, literature as well as old comics and novels in English and Vie
Trang 1THE UNIVERSITY OF DANANG
Group: B.A Team Class: NMKDI-CLC Lecturer: Ph.D Doan Ngoc Phi Anh
Trang 212/10/24, 11:08 AM Business plan - Used Bookstore
Da Nang, October 2016
BA TEAM Nguyen Ngoc Quynh Anh (Leader) Nguyen Thi Hang
Vo Nguyen Ngoc Ha Nguyen Phuoc Ngoc Loan
Trang 3CONTENTS
1 INTRODUCTION 5
1.1 Form 6 hố 5
In 5
"` " 5
1.4 Environment analysis
1.4.1 The Economic Environment 1.4.2 — The Politcal and Regulatory EnvironT©ni( - - 5s nh như rưy 5 1.4.3 The Cultural and Social Envir0n€HI - cc cee n SE Tnhh Hy rưy 5 1.4.4 Competitor 5
1.4.5 Strategy to make the competifive aVan(A€ - càng rưy 6 1.4.6 SWOT AnaÌySÏS - nh HH TH TH HT Hàn HH Hà TT HT HH Hà TH HH HT 6 ` Tàn 6
1.5.1 Form of €C0onIDATV 02 HT HT “TT TH Hà TH Hà TH Hà nà Hà Hà 6 2 PRODUCTION AND OPERATION MANAGEMENT nhìn HH He, 7 PA“ 7
2.2 Facility layOUS - Sàn HH HH HH HH HH TH Ti TH Tà HH 7 PIN cố na 9
2.3.1 0ì) 9
2.3.2 Requirements: wd 2.4, "1 9
2.5 Invenfory €onfroÌL - - cà LH HH HH TH TH TH HH TH vip 10 2.6 Follow-up s€rVIC€S HH HH HH HH HH HH KH 10 PHAN 0h 10
P.98 11
2.9 Management information SYSÉ©TN 0 3 nh HT HH HT HT TH TH nàn kh 12 NT) (45050 12
“3 ' he 12
3.1.1 P1 ân 201000) 0 8N G 12
3.1.2 MMarkket segmentafÏOT L2 TH nh HH HH HT HH HE 12 3.1.3 Marketding Mix Làn HH HH HH kh HH kè 12 4 HUMAN RESOURCES MANAGEMENT - nà HH HH HH HT HH TH rưy 15 ^^ .h 15 4.2 Humian Resource Organizatfional Sfru€fUT -.- sàn TH nh hư,
4.3 Available skilled labors: four founding members
Trang 412/10/24, 11:08 AM Business plan - Used Bookstore
NT 0 a ố 19
4.5 Employees training pÏanning - +: - s3 + nhà TT HH Hà TH TH kh HH 20 4.6 Perfornmianc€ aSS€SSIN€TI: Gà HH HH nh nà kh nàn 21 4.7 Extra salary (applying on salesmen and online marketing stafŸ): co 21 S9 979 ))0.(090900 00) °0 22
5.1 Cost to operate the business in a month 5 - 22 1x * nh hư, 5.2 Financial requirements fund (in 3 months) 5.2.1 lá Am" e.e 23
5.2.2 Myr0 cm Ố.Ố.Ố.Ố e 23
5.2.3 6 7 ee 24
5.2.4 02.60.0002 24
5.3 Financial state'€nIfs Gà HH HT TT HH TH HH KH 24 5.3.1 'The Íncome sfaf€T€TIE 0103012 HT nh Hà nh Tà snags 24 5.3.2 1) v0) e 26
` k6 26
TA ®))900)095 77 5 ốằ 27
Trang 5Business Plan — B.A Used Bookstore B.A Team
1 INTRODUCTION
1.1 Form of the industry
“B.A Bookstore” is a start-up used bookstore, which is a small commercial industry in the Da Nang city It is the goal of the company management to acquire local market share in the used bookstore industry through low price, a dominant selection of products a competitive variety of books Customers can find the books easily both in the Internet and at the bookstore with friendly environment that satisfy their needs
1.2, Products
“B.A Bookstore” will offer a wide range of used books in many fields such as:
economics, technology, science, literature as well as old comics and novels in English and Vietnamese So our products combine:
- Main products: used textbooks, different kinds of novels and comics
- Additional products: magazine, paper, and other kinds of books
In addition, we offer a search and order service for customer seeking to find hard to get items
1.3 Target market
With these kinds of product above, our target customers are students, medium- Income customers and passerby
1.4, Environment analysis
1.4.1 The Economic Environment
Students require a large number of books and materials to study and entertain
However, some of them are not available in the bookstores in Da Nang The cost of new English and Vietnamese books in the bookstore are very expensive
Therefore, medium-income customers, especially students and pupils cannot afford to buy them
1.4.2 The Political and Regulatory Environment According to the Intellectual Property Rights, purchase illegal published books are illegal but purchase used books 1s legal
1.4.3 The Cultural and Social Environment Vietnamese readers nowadays are affected by the cultural reading books from many Western countries, people become more interested in English books, not only use for study and research purposes but also for entertaining
1.4.4 Competitors
- Famous published company for new books in Da Nang: Educational Book Jomt Stock Company in Da Nang City, Branch of Kim Dong Publisher in Middle areas
- Bookstores: Da Nang BookStore (3 branches), FAHASA (English books available), Phuong Nam Bookstore (Le Duan Street, Vincom center
5
Trang 612/10/24, 11:08 AM Business plan - Used Bookstore
Business Plan — B.A Used Bookstore B.A Team
- Comparative advantages: high quality products, competitive prices, good customer services
- Absolute advantages: Discount used textbooks, novels and other materials 1.4.6 SWOT Analysis
¢ High specialization (determined main products - textbooks and novels)
® Competitive price, high quality customer services
¢ New business model of used
1.5.1.1 Advantages
- Provide limited-liability protection for acts and debts As a result, the limited partners are only responsible for the capital invested
- Attracting more investment capital than the form sole proprietorship
- Provide more management flexibility when compared with corporations
Trang 7Business Plan — B.A Used Bookstore B.A Team
- Not easy to transfer the capital
Neu Hanh Son street is a high traffic area; many people will notice our shop
The location is near a lot of schools facilitate us to connect with our target customers (students) such as Danang University of Economics, Le Quy Don High school, Ngo Quyen High school, Hoang Hoa Tham High school In particular, it is just about 100m from DUE (DUE has more than 8000 students) and so our bookstore has advantages in both collecting books from and supplying books to DUE’s students
Reduce the number of competitors: A large number of bookstores in Da Nang are located in the western of Han River Therefore, the location in the eastern of Han River tend to be a competitive advantage of “B.A Bookstore”
Available skilled workers: we can easily hire students from DUE to work for us as part-time employees
Cost of place renting: lower than in the western of Han River
2.2 Facility layouts
Square of our place: 35m’ (5 m*7 m)
On the bookshelves, the similar types of books are grouped together Also, on each shelf, we try to keep similarly sized books together The shelves are about 2.2 meters high and similar to book cases in home They will be at least 10 cm above the floor to prevent books from being humid or decayed We design the
X bookshelf with aim to lead customers around the store, and make them easy
to come across books on their approval The entire interior will be painted in a dark, warm color, such as mahogany The lighting should be indirect and somewhat subdued to give the store a warm feeling
Trang 812/10/24, 11:08 AM Business plan - Used Bookstore
Business Plan — B.A Used Bookstore B.A Team
Trang 9Business Plan — B.A Used Bookstore B.A Team
2.3 Inputs requirement management
- Not be too old, maintained title, authors, published years, and so on
- Suitable with customers’ approval
- Not contain terror or bestial content
In addition, we need quality wrapping paper to wrap books for customers 2.4 Purchasing
colleges |classifyine and Textbooks kilogram Depend high
chosen Quite diverse Buying Old books Sellers lack About M3 directly
Many kinds | published price
IVuong- Ông Ichlabout books -> of books & | Able to bargain to Little
Khiem looking for magazines in| if buying with control crossroads | good and rare Vietnamese the large number the :
(mainly DUE’s| Fluctuant | textbooks & Buy by t hil High students) comics kilogram stability
9
Trang 1012/10/24, 11:08 AM Business plan - Used Bookstore
Business Plan — B.A Used Bookstore B.A Team
No stability
Fairs occurs a few Many kinds Medium High | Quite high
times a years
Online
Popular books, young Low Thriftbooks.co | 7+ million
adult, fiction,} Offer three- Good High
n.com diverse novels |and up ship for
free Free shipping
discount Reasonable Skyo.com Very diverse | Textbooks Free ship Good High
Recently, many students of DUE, especially high-quality program, have demand for
English textbooks Our survey has shown that they would like to buy cheap used
English textbooks for both studying at present and reviewing in the future
2.5
2.6
Inventory control Type of inventory: finished goods
To mimimize holding cost, we must take good care of our books In warehouse,
we keep books in sleeping positions on a horizon surface Of course, the warehouse must not be humid or else the books will be wavy It is necessary to dust books and shelves every week to find out and solve worms In addition, employees have to handle books with clean, dry hands
To minimize stock-out costs, we pay attention to the amount of consuming | will check warehouse for the number of books every week and make plan to purchase
Follow-up services When customers come to our shop, employees will providing information and sharing feelings of books if customers ask for or seem to query (this requires our employees to have general knowledge of books) We also provide wrapping books service for customers
10
Trang 11Business Plan — B.A Used Bookstore
2.7
B.A Team
After a period of 3 month, maybe we survey customers’ needs and wants to find out and offer their demanding books To affect customers’ satisfaction, we require employees to be always helpful and friendly
Quality control With offline purchase, we check the publisher, stamp and content of books to make sure that they have license The most important thing is review the content of books to make sure that they don’t contain bestial or terror content
We also need to check the paper to make sure that books isn’t too old, decayed
or they do not have enough pages
With Online purchase, it is necessary to read the description of books we plan to order carefully We can also compare the price of these online stores before ordering We control customer satisfaction by observing customers’ attitudes at the store, control employees’ attitudes If there 1s any satisfaction, we will find out the reasons and plan to adjust
2.8 Scheduling: Grant Chart
The Material and Technical Basis Planned
book store
books on the shelves
to
1 Collecting books at the Hung Vuong - | All members
Ong Ich khiem crossroads Installing the lighters, flutters, Outsource electrical system
2 Collecting books at City ‘s library Thi Hang, Ngoc Loan
Fixing prices of the collected books Quynh Anh, Ngoc Ha
3 Collecting books at the material waste | Thi Hang, Ngoc Loan
stores around the city
4&5 Collecting books at private houses, Thi Hang
11
Trang 1212/10/24, 11:08 AM Business plan - Used Bookstore
Business Plan — B.A Used Bookstore B.A Team
Arranging books on the shelves orin | Ngoc Loan the warehouse
Arranging books on the shelves orin | Thi Hang, Ngoc Loan the warehouse
7 Decorating, arranging All the four
2.9, Management information system
We will install the management information system into management computer
at the store to control the amount of our purchases, sales and employees
3 MARKETING
3.1 Target market
3.1.1 Market identification Consumer market: Our products will be sold for students, medium-income customers and passerby
3.1.2 Market segmentation 3.1.2.1 Demographic segmentation
- Age: 18-25
- Income: Average (under 5 milion/month) People in this age require a great number of books to study, research and entertain However, they usually have average/lower income than other group Most new books in other bookstores are nearly expensive If customer buy many books one time -> payment ability will be limited
Moreover, price of English books is high as twice as Vietnamese books
People who have low income will have tendency to find this kinds of book
- Buy one or two books
- Buy a whole set of comic books
- Why people prefer buying old books than new books? Some books and comic books don’t publish anymore, some of them are too hard to find
12
Trang 13Business Plan — B.A Used Bookstore B.A Team
3.1.2.3 Customers’ characteristic
- Love reading
- Want to buy cheap books
- Save time, less expense
- Easily have book information im the Internet
- Needs of English books 3.1.3 Marketing Mix 3.1.3.1 Product a) Marketing research Survey: The habit of buying used books from people https://docs.google.com/forms/d/1jXX62ICXxBhdxr1m1XvdvOF_9A99- JEnxczPFHskKz4/prefl
- Business books: Our first target customers are students of DUE; therefore, business books will be our main products However, photocopy textbooks are available with quite cheap price, so we just provide paper textbooks as substitute products of photocopy ones Our aim is to meet students who want to buy paper textbooks involving their majors for wider research and future In addition to textbooks, we provide a large number of other business books which 1s involving majors taught at DUE
- Novels: many kinds of novels, especially science fiction and nonfiction novels will be our second- main products
- Comics: aim to pupils and people who loves colleting comic books
- Other types of books: including children’s hobbies, collecting, magazines, and so on
- The features making our Bookstore is different from the others:
o Sell used books with affordable price
© Abundant in English book more than any bookstores
o Can find many used comic books which are not published anymore
- The characteristics of our books:
o Not contain bad contents
o Some books are still new and good
o Some books are published long time ago 3.1.3.2 Place
a) Purchasing used books process
- Suppliers of company include 3 sources: Students (main sources), material waste stores, library of cities and colleges, other bookstore
13
Trang 1412/10/24, 11:08 AM Business plan - Used Bookstore
books, English books
or novels from:
Thriftbooks.com Usedbookstorevn.com Better WorldBooks.com
Business Plan — B.A Used Bookstore B.A Team
* Foreign language "From students: We will inform the needs of
purchasing used books on the website and Facebook to find the students who want to sell their books Then, our staffs will go to student’s address and choose the books directly In other cases, students can sell their books directly at the Skyo.com
= From material waste stores and library of the cities
and colleges: Choose and buy used books directly
= Other bookstores: waiting for discount or buying
- Advantages and disadvantages of purchasing process
= Not wasting | = Cannot check = Choose many = Wasting too much perfectly the kinds of books transport cost time and quality of books which are = Wasting time expenses to | "Sometimes suitable for the for finding the
go to the transport process demand of sources at the selling places | is slower than the | company beginning
= Plentiful of plan which may | " Can check = Buying from sources affect the quality of books different
business = Buying books sources so It 1S transaction with cheap prices | hard to manage
"If the bookstore runs out of books, we will sorry and hope to see the customers the next
“Customers will choose and buy the books they want at the bookstore
3.1.3.3 Promotion a) Online and offline
14