Financial Feasibility Report On Aquva Spa - Analysis of Fi.
Financial Feasibility Report On Aquva Spa - Analysis of Fi.
Financial Feasibility Report On Aquva Spa - Analysis of Fi.
ANALYSIS OF
FINANCIAL
STATMENTS
REPORT ON THE FINANCIAL MARKETING PLAN
OF
Submission Date:
16th September, 2007
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Hamdard Institute Of Management Sciences
Analysis of Financial Statements Report
TABLE OF CONTENTS
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Hamdard Institute Of Management Sciences
Analysis of Financial Statements Report
Dear Sir,
With all due respect we are thankful to you for giving us a worth-while
opportunity to have the new experience which is not only fruitful in our present
but also will help us in future because of its practical nature and application.
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Hamdard Institute Of Management Sciences
Analysis of Financial Statements Report
PREFACE
Before starting the report, we worked on several factors that influence the plan of
constructing the health centre; we matched the standard of construction that was
maintained by other health resorts. So it would be easy for us to analysis the cost,
competition around & service criteria.
Now, the decision about the authentication and standard of the report is in the
hands of our respected teacher Mr. S.M Shuja Rizvi and we hope that our report
will receive a favorable consideration at our teacher’s hands.
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Hamdard Institute Of Management Sciences
Analysis of Financial Statements Report
ACKNOWLEDGEMENT
First of All we are grateful to Almighty Allah, for his blessings that enabled us to
understand and undertake the opportunity for completing this report with the right
approach and sense of direction.
We wish to express our sincere thanks to Mr. S.M Shuja Rizvi the respected
teacher for giving us an opportunity to work on a practical approach project and
giving us the guidance to complete the same.
We would also like to thank all the friends, colleagues and concerned persons like
trainers, fitness centre owners, health resorts etc. who helped us in the preparation
of this report.
Special thanks go to all of our supporters who contributed in the formation of this
report in order to make it they tried their level best and each member collected as
much information as they can.
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Hamdard Institute Of Management Sciences
Analysis of Financial Statements Report
1. Executive Summary
Aquva Spa & Fitness Centre will serve Karachi-area residences & businesses,
helping them to become more productive, healthy & fresh while lowering
businesses costs with innovative Wellness programs and
strategies to serve them. At Aquva Spa & Fitness Centre
(ASFC), we tie your smartness & productivity directly
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Hamdard Institute Of Management Sciences
Analysis of Financial Statements Report
2 Financial Analysis
This section will offer a financial overview of Aquva Spa & Fitness Centre as it relates to
the financial activities. We will address Break-even Analysis, sales forecasts, expense
forecasts, and how they link to the marketing strategy
Assumptions:
Average Per-Unit Revenue Rs.2,500
Average Per-Unit Variable Cost Rs.500
Estimated Monthly Fixed Cost Rs.500,000
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Hamdard Institute Of Management Sciences
Analysis of Financial Statements Report
3. Capital Structure
Classification of Equity & Debt
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Hamdard Institute Of Management Sciences
Analysis of Financial Statements Report
Revenues
Corporate Clients 17,500 20,000 22,000 22,000 21,000
Individual Clients 9,000 12,000 10,000 9,500 9,000
Total Revenues 26,500 32,000 32,000 31,500 30,000
Cost of Sales
Payroll 7,000 7,000 7,500 7,500 8,000
Room Expenses 5,000 5,000 5,000 5,000 5,000
Telephone Expenses 1,000 1,000 1,000 1,000 1,000
Dining/Parties 4,000 4,000 4,000 4,000 4,000
Fitness/Spa/Gym 1,000 1,000 1,000 1,000 1,000
Repair & Maintenance 1,000 1,000 1,000 1,000 1,000
Utilities 1,000 1,000 1,000 1,000 1,000
Total Cost of Sales (20,000) (20,000) (20,500) (20,500) (21,000)
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Hamdard Institute Of Management Sciences
Analysis of Financial Statements Report
4. Market Summary
Aquva Spa & Fitness Centre possesses good information about the market and knows a
great deal about the common attributes of the prized and loyal customers. This
information will be leveraged to better understand who is served, their specific needs, and
how Aquva Spa & Fitness Centre can better communicate with them. The business model
has been well received and marketing is especially important to maintain growth and
market penetration. In addition to offering fitness facilities for Karachi corporations &
residence, Aquva Spa & Fitness Centre' main activity is the recreation Spa Wellness
programs. The basic market need for our corporate clients is the reduction of corporate
costs and the increase in employee efficiency & to provide them & our individual
customer Spa facilities to relax and health facility that can be achieved through long-term
Wellness programs.
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Hamdard Institute Of Management Sciences
Analysis of Financial Statements Report
Recently there were widespread reports about an impeding health crisis & obesity.
Pakistanis, relative to their Asian counterparts have higher incidents of obesity. To a
large degree, this is correlated to Pakistani’s unhealthy diet of oily, fast food, and
generally poor food choices, especially fried foods.
There have been two significant market trends in the last five years.
1. Increased usage of fitness facilities on behalf of individuals.
2. Exercising and working out has become a more mainstream activity in Pakistanis
lives over the last decade.
5. Marketing Strategy
Aquva Spa & Fitness Centre will begin by targeting small- to medium-sized businesses in
the downtown Karachi area. The first task is to convince senior executives of the benefits
and needs of wellness programs. This will be accomplished by aggressively pursuing
interaction and relationships with business professionals who would profit from using
this service.
5.1 Mission
Aquva Spa & Fitness Centre is a health service that helps businesses and individual to
attain one of the greatest gifts of all “good health”. Personal gains, such as improved self-
esteem and self-motivation, combined with measurable benefits & advantages.
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Hamdard Institute Of Management Sciences
Analysis of Financial Statements Report
5.4 Positioning
Aquva Spa & Fitness Centre will position them selves as the most effective wellness
strategy and program developer. This positioning will be supported by statistics
indicating an increase in you productivity and a decrease in business operation expenses
from the implementation of corporate wellness programs.
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Hamdard Institute Of Management Sciences
Analysis of Financial Statements Report
¾ Customer Service- Aquva Spa & Fitness Centre will operate on the principle that
it is imperative to achieve total customer satisfaction if the business is going to
succeed.
6. SWOT Analysis
The following SWOT analysis captures the key strengths and weaknesses within
the company, and describes the opportunities and threats facing Aquva Spa &
Fitness Centre.
6.1 Strengths
o Results-orientated approach to attracting and maintaining customers.
o A well-researched, detailed health wellness program that is long-term
in focus.
o Intensively trained staff.
6.2 Weaknesses
o High costs associated with customized, personal service.
o The inability to work on a high volume business model.
o The costs of attracting a large corporate client.
5.3 Opportunities
o Participation within a growing market.
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Hamdard Institute Of Management Sciences
Analysis of Financial Statements Report
o The large increase in clients that follow with the acceptance of Aquva Spa
& Fitness Centre Corporate Fitness’s program by a single company.
o The ability to leverage future quantitative analysis that supports the
contention that long-term wellness programs have a significant, positive
impact on a company's bottom line.
5.4 Threats
o Lack of immunity to an economic downturn.
o Potential competition from larger, well established competitors.
o A change in society where the individual begins to take far more
responsibility for his/her health maintenance.
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Hamdard Institute Of Management Sciences
Analysis of Financial Statements Report
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