Strategic Management Report

A Comprehensive report on “Strategic Management” discussing in detail its

role and the issues involved.

Report Submitted By :-
Rakshinda Fahim (Group Leader) 2432-209003
Muhammad Saleem Ashraf 2432-309005
Ali Ahmed Khan 2432-209005
Muhammad Nazim 2432-309006
Finhas Mushtaq 2432-309002
Ammar Navid Rizvi 2432-309001
 Strategic Management Report

LETTER OF TRANSMITTAL

December 23, 2010

Mr. Feroz Alam
Teacher, Strategic Management
Preston University
Karachi.

Sir:

We herewith present our Comprehensive report on “Strategic Management” authorized

by you as a requirement for this course.

In this report, we have tried to analyze of the financial statements of Dreamworld Resort.

We hope that we have covered all the areas that were required for the report.

If there is any clarification demanded, we would appreciate a call from you to our group
members

Sincerely,

Rakshinda Fahim (Group Leader)

Muhammad Saleem Ashraf
Ali Ahmed Khan
Muhammad Nazim
Finhas Mushtaq
Ammar Navid Rizvi

Preston University Karachi – North Nazimabad Campus Page 2

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INDEX

Acknowledgement 3

Assignment on Strategic Management 4

Company Profile 5

Existing Vision and Mission Statement

of Dreamworld Resort
6

Analysis of Vision and Mission Statement

of Dreamworld Resort
7

Vision and Mission Statement of

Dreamworld Resort (New) 8

External Opportunities and Threats 9

Competitive Profile Matrix (CPM) 10

External Factor Evaluation (EFE) Matrix 11

Internal Strengths and Weaknesses 12

Internal Factor Evaluation (IFE) Matrix 13

SWOT Analysis of Dreamworld Resort 14

SWOT Matrix - Alternate Strategies 16

Advantages and Disadvantages of

Alternative Strategies 17

Recommend Specific Strategies and

Long Term Objectives 18

Projected Income Statement 20

Financial Ratio for Projected Years 21

Strategy Review and Evaluation 22

Preston University Karachi – North Nazimabad Campus Page 3

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ACKNOWLEDGEMENT

In the name of “Allah”, the most beneficent and merciful who gave us strength and
knowledge to complete this report. This report is a part of our course “Financial
Management”. This has proved to be a great experience. This report is a combine effort
of Rakshinda Fahim (Group Leader), Muhammad Saleem Ashraf, Ali Ahmed Khan,
Muhammad Nazim, Finhas Mushtaq and Ammar Navid Rizvi.

We would like to express our gratitude to our Strategic Management teacher Mr. Feroz
Alam; who gave us this opportunity to show our efforts in the form of this report.

Preston University Karachi – North Nazimabad Campus Page 4

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ASSIGNMENT ON STRATEGIC MANAGEMENT

Objective/Theme:

Write a Comprehensive report on “Strategic Management”. Discuss in detail its role and
the issues involved in any Organization of your Choice.
Instructions:
• Assignment should be in formal report form.
• The Assignment should comprise minimum 15 Pages write-up (excluding Title
page, Acknowledgement, Index and References pages).
• The following steps to be followed and covered in your report.

Step 1-Identify the firm’s existing vision, mission, objectives, and strategies.

Step 2-Develop vision and mission statement for the organization.

Step 3-Identify the organization’s external opportunities and threats.

Step 4-Construct a Competitive Profile Matrix (CPM)

Step 5-Construct an External Factor Evaluation (EFE) Matrix.

Step 6-Identify the organization’s internal strengths and weaknesses.

Step 7- Construct an internal Factor Evaluation (IFE) Matrix.

Step 8-prepare a SWOT Matrix, Give advantages and disadvantages of alternative

strategies.

Step 9-Recommend specific strategies and long term objectives. Show how much your
recommendations will cost. Clearly itemize these for each projected year. Compare your
recommendations to actual strategies planned by the company.

Step 10-Specity how your recommendation can be implemented and what result you can
expect. Prepare forecasted ration and projected financial statements. Present a timetable
or agenda for action.

Step 11-Recommend specific annual objectives and policies.

Step 12-Recemmend procedures for Strategy review and evaluation.

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COMPANY PROFILE

Dreamworld Family Resort is the outcome of The Almighty’s Benevolence,

Magnificence and Magnanimity, for which we will remain indebted, forever.

Locale of realization of your dream!

The area, which is accessible from all parts of the city, is adjacent to Gulshan-e-Maymar,
off main Super Highway. Just 20 minutes drive from the Civic Center, sprawling over
about 150 acres of land the oasis of your dreams. An oasis, which is truly, literally and
virtually an oasis. An oasis that is all set and rolling to serve all your purposes,
exclusively. A serene and tranquil gateway family resort for you and your family to
rejuvenate your mind and the body.

Physically away from home; mentally, at as much peace!

At the Resort, you along with your family will be able to keep yourself busy and
entertained for the whole day long, starting of with your breakfast and ending up with
dinner! For such an entertaining, amusing and recreational distraction, you need…what?
Well of course the Dream World Family Resort! A place where you will be assured of
security, privacy and class of the people in all respects. This matter is not to be worried
about as entrance to the Resort is restricted for members and their guests, exclusively. A
person, who is able to satisfy all the aspects of the membership criteria, as set by the
selection committee, can become a member along with his/her family.

Preston University Karachi – North Nazimabad Campus Page 6

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EXISTING VISION AND MISSION STATEMENT OF

DREAMWORLD RESORT

Vision statement :-

Our esteemed goal is to be the pioneer in providing the exclusive, distinctive, unique and
truly recreational/amusement/leisure/entertainment and enjoyment facilities to the
members in family atmosphere at our Dreamworld Family Resort situated adjacent to
Gulshan-e-Maymar, Super Highway, Karachi where people really feel themselves very
much relaxed, stress-free and hassle-free at the highest level of satisfaction.

Mission Statement :-

 To be the unique and matchless resort/club having exclusive un-paralleled

amusement / recreational / entertainment facilities for the members of all ages in
safe and sound, healthy and peaceful family atmosphere.
 To provide wide range of recreational and joyous facilities to members and their
families where dreams come true.
 To assemble the people of all categories of life at a plate-form for growing their
social affiliations and attachments with each other which may create brotherhood
environment amongst them.
 To set and maintain high quality of recreational standards and services to the full
satisfaction of visitors / members motivating as well the tourists and visitors from
other countries sharing economy of the country in shape of earning valuable
Foreign Exchange.
 To be the real home of first choice for our members and their families after their
own home where they can enjoy/relax with all kinds of food and catering facilities
 To meet social and cultural; obligations towards the society being a patriotic and
conscientious corporate citizens besides increasing employment opportunities of
the area and gradually improve their income and life style.

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ANALYSIS OF VISION AND MISSION STATEMENT OF

DREAMWORLD RESORT

Vision statement :-
Vision statement defines the desired or intended future state of an organization or
enterprise in terms of its fundamental objective and/or strategic direction. Vision is a long
term view, sometimes describing how the organization would like the world in which it
operates to be.
After having a look a Dreamworld Resort’s vision statement, it can be seen that it is
observed :-

- Statement is too vague

- It should reveal more about resort and amusement park.
- Location of the resort should not have been mentioned.

Mission Statement :-
A mission statement is a formal, short, written statement of the purpose of a company or
organization. The mission statement should guide the actions of the organization, spell
out its overall goal, provide a sense of direction, and guide decision-making. It provides
“the framework or context within which the company's strategies are formulated.”
After having a look a Dreamworld Resort’s mission statement, it can be seen that it lacks
four basic mission statement components. They are :-

Markets = Geographically, where does the firm compete?

Technology = Is the firm technologically current?
Concern for survival, growth & profitability = Is the firm committed to growth
and financial soundness?
Concern for public image = Is the firm responsive to social, community and
environmental concern?

Core Values:
Core values are those vital few values that all members of the organization are expected
to use, live by and demonstrate on a daily basis while executing their work
responsibilities. “Core Values are the essential and enduring tenets of an organization. A
small set of timeless guiding principles that require no external justification; they have
intrinsic value and importance to those inside the organization.”

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VISION AND MISSION STATEMENT OF

DREAMWORLD RESORT (NEW)

Vision statement :-
Dreamworld’s goal is to achieve the standards of a world class resort by providing
members with memorable experiences that combine
recreational/amusement/leisure/entertainment and education, with distinctive themed
entertaining experiences for every member of the family providing members a relaxing
and enjoyable experience through the highest quality standards of customer service with
genuinely friendly caring people who take pride in what they do.

Mission Statement :-
• To be the unique and matchless resort/club having exclusive un-paralleled
amusement / recreational / entertainment facilities for the members of all ages in
safe and sound, healthy and peaceful family atmosphere.
• To provide wide range of recreational and joyous facilities to members and their
families where dreams come true.
• Paramount in its mission of generating continued growth through expansion,
innovation and maximization of market share, the company seeks to conduct its
operations in an environmentally sensitive manner.
• To provide our members with the complete resort experience imaginable, fulfilling
their every desire;
• To ensure its responsibilities and contribution to the community.
• To develop a good and proper relationship with the government and the travel
industry.
• To provide all employees with a fair package of employment and a conducive
working environment. This is done by recruiting and training employees who are
keen to progress, willing to learn new skills and accept greater responsibilities.

Core Values:
- Fun
- Service
- Safety
- Education and Conservation
- Respect for People
- Quality
- Uniqueness
- Compassion

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EXTERNAL OPPORTUNITIES AND THREATS

OPPORTUNITIES

 Much chances of improvement in target customers; we believe that now they

should diversify their customers to universities youth and common individuals.

 Dream world may add safari attraction.

 Electronic advertising can be improved.

 “Our marketing strategy for dream world” up till now dream world has mainly
offered membership to companies and those companies organize events on just
annual basis. We believe that there should be discounted memberships for those
companies’ employees; this will multiply the effects on “market penetration” and
since there is strong bondage and family system in our society so if one brother
gets the membership, then there are high chances that his siblings and friends will
also get that membership.

THREATS

 In future there are high chances that Dream World may get a lot of competition
because of increase in amusement parks in the city.

 In the past decade there was a huge surge in inflation in the city which have
significantly decline the recreational activities of Karachites, now residents prefer
to spend holidays at home watching electronic media.

 One of the major threats, which can give high competition to Dream World, is
increase in farm houses.

 Other amusement parks are in the middle of city like Aladdin and Arena; hence
people prefer to go near to their homes.

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COMPETITIVE PROFILE MATRIX (CPM)

Competitive profile matrix is an essential strategic management tool to compare the firm
with the major players of the industry. Competitive profile matrix shows the clear picture
to the firm about their strong and weak points relative to their competitors. The CPM
score is measured on basis of critical success factors, each factor is measured in same
scale means the weight remain same for every firm only rating varies. The best thing
about CPM is that it include your firm and also facilitates to add competitors make easier
the comparative analysis.

Critical Success Factors

Critical success factors are extracted after deep analysis of external and internal
environment of the firm. Obviously there are some good and some bad aspects for the
company in the external and internal environment. The higher rating shows that firm’s
strategy is doing well to support these critical success factors and lower rating means
firm’s strategy is lacking to support the factors.

Dreamworld Arabain Sea Arena

Critical Success Weig Ratin Ratin Ratin
Score Score Score
Factor ht g g g
Advertising 0.20 1 0.20 2 0.40 3 0.60
Service 0.10 4 0.40 3 0.30 2 0.20
Price 0.10 3 0.30 2 0.20 2 0.20
Administration 0.10 4 0.40 3 0.30 3 0.30
Income
0.15 4 0.60 2 0.30 3 0.45
Statement
Debt Burden 0.10 4 0.40 3 0.30 2 0.20
Market Share 0.05 1 0.05 1 0.05 3 0.15
Expansion 0.10 3 0.30 1 0.10 2 0.20
Competitiveness 0.10 3 0.30 3 0.30 3 0.30
Total 1.00 2.95 2.25 2.60

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EXTERNAL FACTOR EVALUATION (EFE) MATRIX

External Factor Evaluation (EFE) Matrix is a strategic management tool which allows the
strategists to examine the cultural, social, economic, demographic, political, legal, and
competitive information. EFE Matrix indicates whether the firm is able to effectively take
advantage of existing opportunities along with minimizing the external threats. Similarly,
it will help the strategists to formulate new strategies and policies on the basis of existing
position of the company.
EFE MATRIX FOR DREAMWORLD
Weig Rati Weighted
Key External Factors
ht ng Score

Opportunities

Improving in target customers 0.20 3 0.60

Adding safari Attraction 0.10 4 0.40

Improving Electronic Advertising 0.05 2 0.10

Implementing our new marketing startegy 0.05 2 0.10

Threats

Increased competition 0.20 3 0.60

Added Inflation 0.20 2 0.40

Added farm Houses 0.05 1 0.05

Easily approachable few other compititors 0.15 2 0.30

Total Weight Score 1.00 2.55

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INTERNAL STRENGTHS AND WEAKNESSES

STRENGTHS

 The largest Resort not only in Pakistan but all over the South Asia with World
Class 160 Facilities over an area about 150 acres available 24/7.
 The area is just 20 minutes drive from the Civic Centre.
 Sprawling over about 150 acres of land.
 Chalets at Dream World are especially designed for providing guests with ultimate
level of luxurious and comfortable living experience at the resort.
 The modernity and the level of luxury are completely aligned with international
standards.
 Membership on just Rs.5,000 monthly installments (Interest free payment).
 Facilities are absolutely free for members of all age group, from toddlers to elders
for all genders.
 18 holes, 72 par Floodlit Golf Course. (Affiliated with SGA & PGF covering
around 40 Golf Clubs both national and internationally).
 Amusement Park with Horse Riding, Bowling Alley, Go-karts, Harley Bikes and
many others adventure and thrill facilities.
 Water Resort with Artificial Sea, Slides, Ladies and Gents separate Swimming
Pools, Boating Lake, Fun Lagoon and many other fun filled activities.
 Separate area for Veil conscious women with tons of facilities.
 5 Star Hotel stay in Suites and Chalets (for day & night stay at Resort) with
dedicated staff and superb services.
 Musical, Food & Cultural activities are a regular feature at Resort.

WEAKNESSES

 Even though dream world is 30 minutes drive from civic centre but the member
has to pass through some sensitive areas like Al-Asif square in Karachi.
 Dream world‘s marketing team has just focused on corporate clientele and
therefore has ignored local Karachites.
 “Perception is more important than reality”; there is a strong perception in the city
that these sorts of amusement parks are very costly and Dream World’s team
however has failed to dilute that perception.
 No adventure zone like Go Aish.
 No Ice-skating court, which is growing attraction for Karachites; therefore people,
who like ice-skating, prefer Arena over Dream World.

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INTERNAL FACTOR EVALUATION (IFE) MATRIX

Internal factor evaluation (IFE) matrix is a strategy formulation tool which is used to
examine the strengths and weaknesses in the functional area of a business. In IFE Matrix
it is more important to thoroughly understand the factors included rather than the actual
numbers. Therefore intuitive judgments are required in developing IFE Matrix.

IFE MATRIX FOR DREAMWORLD

Weig Rati Weighted
Key Internal Factors
ht ng Score
Strengths

Gross profit ratio has improved 0.05 3 0.15

Specialized staff 0.07 4 0.28

More facilities than any other resort 0.10 3 0.30

Debt burden zero 0.10 3 0.30

Its existence in many countries makes it
0.20 3 0.60
more reliable for customers
Weakness

Revenue from electronic sources is lesser 0.10 2 0.20

Electronic marketing is weaker 0.20 1 0.20

Electronic payment system is unavailable in
0.14 1 0.14
Pakistan
Security system needs to be updated with
0.04 1 0.04
innovations
Total Weight Score 1.00 2.21

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SWOT ANALYSIS OF DREAMWORLD RESORT

Internal
Strengths Weaknesses
1. The largest Resort not only in 1. Even though dream world is 30
Pakistan but all over the South minutes drive from civic centre but
Asia with World Class 160 the member has to pass through
Facilities over an area about 150 some sensitive areas like Al-Asif
acres available 24/7. square in Karachi.
2. The area is just 20 minutes drive 2. Dream world‘s marketing team has
from the Civic Centre. just focused on corporate clientele
3. Sprawling over about 150 acres of and therefore has ignored local
land. Karachites.
4. Chalets at Dream World are 3. “Perception is more important than
especially designed for providing reality”; there is a strong
guests with ultimate level of perception in the city that these
luxurious and comfortable living sorts of amusement parks are very
experience at the resort. costly and Dream World’s team
5. The modernity and the level of however has failed to dilute that
luxury are completely aligned with perception.
international standards. 4. No adventure zone like Go Aish.
6. Membership on just Rs.5, 000 5. No Ice-skating court, which is
monthly installments (Interest free growing attraction for Karachites;
payment). therefore people, who like ice-
7. Facilities are absolutely free for skating, prefer Arena over Dream
members of all age group, from World.
toddlers to elders for all genders.
8. 18 holes, 72 par Floodlit Golf
Course. (Affiliated with SGA &
PGF covering around 40 Golf
Clubs both national and
internationally).
9. Amusement Park with Horse
Riding, Bowling Alley, Go-karts,
Harley Bikes and many others
adventure and thrill facilities.
10. Water Resort with Artificial Sea,
Slides, Ladies and Gents separate
Swimming Pools, Boating Lake,
Fun Lagoon and many other fun
filled activities.

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11. Separate area for Veil conscious

women with tons of facilities.
12. 5 Star Hotel stay in Suites and
Chalets (for day & night stay at
Resort) with dedicated staff and
superb services.
13. Musical, Food & Cultural
activities are a regular feature at
Resort.

External
Opportunities Threats
1. Much chances of improvement in 1. In future there are high chances
target customers; we believe that that Dream World may get a lot of
now they should diversify their competition because of increase in
customers to universities youth and amusement parks in the city.
common individuals. 2. In the past decade there was a huge
2. Dream world may add safari surge in inflation in the city which
attraction. have significantly decline the
3. Electronic advertising can be recreational activities of
improved. Karachites, now residents prefer to
4. “Our marketing strategy for dream spend holidays at home watching
world” Up till now dream world electronic media.
has mainly offered membership to 3. One of the major threats, which
companies and those companies can give high competition to
organize events on just annual Dream World, is increase in farm
basis. We believe that there should houses.
be discounted memberships for 4. Other amusement parks are in the
those companies’ employees; this middle of city like Aladdin and
will multiply the effects on Arena; hence people prefer to go
“market penetration” and since near to their homes.
there is strong bondage and family
system in our society so if one
brother gets the membership, then
there are high chances that his
siblings and friends will also get
that membership.

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SWOT MATRIX
ALTERNATE STRATEGIES
STRENGTHS WEAKNESS
1. The largest Resort all over 1. Members have to pass
the South Asia through some sensitive
2. Ultimate level of luxurious areas in Karachi.
and comfortable Chalets 2. Focused on corporate
and suites. clientele.
3. Level of luxury is aligned 3. Strong perception about
with international amusement parks is that
standards. they are very costly.
4. Membership on just Rs.5, 4. No adventure zone like Go
000 monthly installments Aish.
of Interest free payment. 5. No Ice-skating court and
5. Separate area for Veil Safari
conscious women with
tons of facilities.
OPPORTUNITIES SO STRATEGIES WO STRATEGIES
Maxi-maxi Mini-maxi
1. Diversify their customers 1. Move amount of money to 1. Advertise more about its
to universities youth and be invested for marketing fee structure so that
common individuals. via advertisements. misconception of heavy
2. Add safari attraction. 2. Specific amount of budget fees of membership would
3. Electronic advertising can should be allocated to be diluted.
be improved. build safari zone, ice – 2. Build a separate road that
4. There should be skating court and would link super highway
discounted memberships adventure zone. in this way al – Asif’s area
for those companies’ can be ignore.
employees to multiply the
effects on “market
penetration”.
THREATS ST STRATEGIES WT STRATEGIES
Maxi-mini Mini-mini
1. A lot of competition 1. Cut down their 1. More economical
because of increase in membership fees to invite packages for customers
amusement parks. more customers. can stimulate customers to
2. Inflation has decline the 2. Advertise uniqueness of take membership.
recreational activities of the resort to gain
Karachites. competitive advantage.
3. Increase in farm houses.
4. People prefer to go near to
their homes for
recreational activities.

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ADVANTAGES AND DISADVANTAGES OF

ALTERNATIVE STRATEGIES
ADVANTAGES:-

• Dream world is a pioneer and trend setter in the field of amusement therefore with
its persistent endeavor and struggle to bring innovative and recreational activities
it can easily compete its competitors with its outclass strategic management.
• Big name in recreational field therefore it has become the first priority for elite
class of our society so it’s quite simple for Dreamworld to diversify its customers
like university youth by introducing economical packages.
• Actions speak louder than words. By spending on advertisements Dreamworld can
bring the people out of the exhausted atmosphere of their homes to the relaxing
environment of its resort. This can also given Dreamworld a competitive
advantage over its competitors.
• Though Dreamworld is not investing much in advertising its image yet its
reputation in the market is exclusive and stupendoures. If Dreamworld starts to
advertise itself there is much possibility that its future revenue would exceed more
over its expectations.
• As it’s sprawling over a large area Dreamworld can allot specific areas for safari,
ice-skating and for adventure zone so that would be an additional attraction for
people and would increase its revenue.
• By introducing economical packages for common individuals and university
youths Dreamworld can diversify its customers.
• Proper advertisement would help Dreamworld to eradicate the misconception of
high membership charges.
• Reduced or more economical packages for customers can urge the people who are
scared of its locality to try to visit it at least once. This would also give a
competitive advantage over its competitors.
• Different packages for different class of society should be introduced and facilities
should be given accordingly.
• A specific percentage of budget allocated towards building ice-skating court,
safari would reduce the dividend of share holders.
• The websites like Amazon or YouTube would help Dreamworld to advertise itself
in front of its users whether sitting inside the country or outside.

DISADVANTAGES:-

• Electronically payment system facility is not available at Dreamworld.

• For first two years of new strategically planning the company would suffer loss.

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RECOMMEND SPECIFIC STRATEGIES AND

LONG TERM OBJECTIVES

RECOMMENDED LONG TERM OBJECTIVES:

By analyzing the current strength of the company with great potential in this industry
growth, the following long term objective is :-

“Dream World! The best recreational / amusement (resort) of the South Asia by the year
2015.”

Recommended Specific Strategies:

1. Sales revenue is projected to increase each year 12% annually.

2. Gross Margin is forecasted 15% increase annually.
3. Train the staff locally as well as send them abroad to learn the art and technique to
cater their valued customer to add value to the company.
4. Dream world’s aim is not only to provide services to local tourist but also foreign
tourist with accommodation facility. Match with five star hotel standard include
continental dishes.
5. Increase in recreational / amusement facilities and adopt the latest tools which are
found in Europe and developed countries.
6. Include ‘SAFARI’ where live wild atmosphere is created.

After implementing and evaluating these strategies, we will achieve the long term
objective.

Strategy Cost:
It is estimated that there will be Rs. 50 M expenditures in 5 years programme for
achieving LTO. Distribution of the cost will be as follows.

From year 2011 to 2012:

Total Rs.10 M will be required in first two years programme to train the staff, up grade
the feature of the Dream World infrastructure.

From year 2013 to 2015:

A massive Rs. 40 M will be required in the second phase of the project for ‘Safari’ and
this inroad us to achieve ultimate success of being top company or the best resort of the
South Asia.

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MASTER PLAN FOR IMPLEMENTING RECOMMENDED LONG TERM

OBJECTIVE:

Having all the evaluation externally and internally, we reach an conclusion that there is a
great opportunity or massive room for expansion in this industry and being the pioneer,
we can capture the major portion of the market or enjoy the monopoly. Exclusive
planning is as follows.

1. Special rate will be offered to the colleges and universities students to come and
spend their summer and exam holiday to the best resort which cater their need and
later them away from the tension of study.

2. Enjoy membership for all their fun fair entertainment with high quality
entertainment services.

3. Sales team will be motivated by giving them commission and loyality and
ownership to boost their morale and feel proud of being the part of the Dream
World.

By opting these three strategies there is a fair amount of chance to increase the sales
revenue by 12% per year as projected.

Increase in 12% sales, ultimately end up with 15% gross margin due to control in cost of
services provided.

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PROJECTED INCOME STATEMENT

DREAMWORLD LIMITED

PROJECTED INCOME STATEMENT FOR FIVE YEARS

2011 2012 2013 2014 2015

Revenue 198,164,430 198,164,430 277,430,202 332,916,242 349,562,054

Membership fee 116,003,848 116,003,848 145,004,810 159,505,291 175,455,820

314,168,278 314,168,278 422,435,012 492,421,533 525,017,874

- - - - -
direct expenses 294,298,558 294,298,558 244,298,558 244,298,558 244,298,558
198,69,720 19,869,720 178,136,454 248,122,975 280,719,316
Operating expense

Administrative expense 51,731,880 51,731,880 51,731,880 51,731,880 51,731,880

Marketing & selling expense 13,742,767 13,742,767 13,742,767 12,742,767 12,742,767
Bank charges 1,543,422 1,543,422 1,543,422 1,543,422 1,543,422

670,180,69 670,180,69 670,180,69 66,018,069 66,018,069

Operating income (471,483,49) (471,483,49) 111,118,385 182,104,906 214,701,247

Taxation 1,098,894 1,098,894 1,098,894 1,098,894 1,098,894

Profit after Taxation (482,472,43) (482,472,43) 111,019,491 181,006,012 213,602,353

Note
If we add recommendation cost which is to build ice skating and tennis court the expected
expenses are likely to increase by 50,000,000 for two years, marketing expenses are also
projected to grow in the beginning three years for extra promotional efforts, so in the beginning
two years Dreamworld is likely to bear loss with the increased manufacturing cost which we
have included in "Direct cost". Year 2013 and forth will bring extra deal of revenue which is
anticipated 40% more and membership revenue is expected to increase 25%. Adding 20% to the
revenue and 10% to membership income is expected for 2014 and adding more 5% and 1% to
2014 revenue and membership income respectively will make 2015's revenue and membership
fee as the product now reaches its maturity stage. More advertising for new projects will be
focused much on initial years, later on marketing and selling budget as earlier will be followed.

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FINANCIAL RATIO FOR PROJECTED YEARS

201 201 201 201 201

RATIOS 2009
1 2 3 4 5
Operating income to
1.94 -0.23 -0.23 0.4 0.54 0.6
revenue

Net income to revenue 2.94 -0.24 -0.24 0.4 0.54 0.61

Current ratio = Current
Assets/Current 1.61 same same ------- ------- -------
liabilities
Working Capital =
19,386,5
Current asset – Current same same ------- ------- -------
41
liability
Cash ratio = Cash +
0.21 same same ------- ------- -------
Marketable securities

Asset turnover 0.41 0.39 0.39 0.54 0.65 0.69

Return on Asset 0.01 0.095 0.095 0.21 0.35 0.42

Debt ratio 0.28 0.26 0.26 ------ ------ -------

Return on
0.013 -0.13 -0.13 0.29 0.48 0.57
Shareholder’s equity
EPS= Net Income/No.
0.15 -1.5 -1.5 3.46 5.65 6.67
of Shares Outstanding

Preston University Karachi – North Nazimabad Campus Page 22

 Strategic Management Report

STRATEGY REVIEW AND EVALUATION

Evaluation regarding achieving the targeted sales and G.M will be made at each year and
at every stage to check out any deficiency in order to achieve the long term objective.

If necessary, certain amendment may be made according to the situation and demand.

Inclusion of “SAFARI” with high state of the art facility will take the ‘Dreamworld
Resort’ to sky high and this distinctive strategy and continuous maintenance of the high
performance will take us among the top companies of the subcontinent by the year 2015.

Preston University Karachi – North Nazimabad Campus Page 23