Finance Prima Cinema illustrated the two main streams where its revenue will come from; one of the streams is by the sale of PRIMA Hardware (PRIMA Movie Player), and the other one is the sale from the movie. In the “Key Assumptions” part, the PRIMA box whole sale price is at $20,000 for North America Market, and the standard movie (not 3-D or early release movie) cost $500 per title for the consumer. However, we have some concerns about the revenues from the streams. The first concern is about the operational income showed in Appendix A, the income for first three year are positive, however, the hardware revenue is a lot more than movie revenue, actually, the cost for Prima Cinema to get the patent from Studio is more than the movie revenue Prima Cinema earned in all three years, which means the reason that income stays positive is because the hardware is earning a lot of profit. The build of Prima box is estimated at $7,000, which includes the manufacture and inventory cost. The wholesale price is $20,000, and in page 16, the quality of the hardware is compared with professional home theater which costs easily over $100,000 – 150,000 per deployment. Thus, Prima Cinema is trying to sell a $7,000 dollar component at $20,000, which worth $100,000 – 150,000. What a great deal! However, the real cost of the Prima box is debatable or the quality is not as good. If the price is not true, which means the cost for manufacturing is a lot higher; the operational income will become negative, because both of the main streams are negative. If the quality of the Prima box is not as good, why would people want it? Why would people buy the service? That would lead the income going to negative also. The second concern is about the size of the data base. The purpose of Prima Cinema is trying to provide easy access to the new released movie for wealth people who do not want to go to cinema. In page 23, Prima Cinema is trying to “consume 15 - 20 movies a year on average in the early years of deployment.” This means there is not much service Prima cinema could provide to people, no one would want to install the hardware for the choice of 15 movies. Customer does not have much choice and that would decrease potential customers. The
A Business Plan for the Entrepreneur Reasons for Constructing a Business When setting up a business it is sometimes easy to focus only on the day-to-day running of the business rather than what may happen in the future to the business. Lack of attention to the future of the business could possibly lead to problems such as bankruptcy. A business plan is a ‘living document’ which considers details about where the business wants to end up in the near and distant future. As a business changes, the…
Strategic Plan, Part 1: Conceptualizing a Business Kandis D Lewis BUS/475 March 11, 2014 Timothy Harrington When starting a business it important that you take into consideration the vision, mission and values that you would like for your company to have when creating a strategic business plan. With implementing these; three key functions into your plan, will provide your business the opportunity to become a successful business. The business idea that I would like to one day pursue would be a…
Neuromuscular Center Business Plan XXXXXX HCA 311 Health Care Financing & Information Systems XXXXXXX June 8, 2012 Executive Summary In general, your executive summary should highlight at least one important statement from each of the other sections in your business plan. Think in terms of giving the recipient what they need in order to make a decision about whether or not to invest in your business. If the reader only reads the executive summary, he or she should have a very clear idea…
P5 Business plan Name: Kieron Rogers Business Plan for: A Café in Newport (Please use this template in conjunction with the guide Preparing a business plan) |Document Version: | | |Date: | | |Completed by: | | Business…
BUSINESS PLAN Tippy B's Diner 1234 Jackson St, Jackson Hole, Wyoming January 30, 2014 Table of Contents Executive Summary a. Vision Statement…..4 b. Mission Statement…..4 c. The Company…..4 d. The product.....4 e. The Market…..4 f. The Competition…..4 g. The Operations…….4 Business Plan a. Vision Statement…..5 b. Mission Statement…..5 The Company a. Company History…..5 b. Company Goals and objectives…..5 c. Company Ownership Structure…..5 d. Company Management…
its revenue is less than its expenses. A) True B) False Points Earned: 2.0/2.0 Correct Answer(s): True Correct Incorrect Ungraded 3. Business will incur a profit when expenses are higher than revenue. A) True B) False Points Earned: 2.0/2.0 Correct Answer(s): False Correct Incorrect Ungraded 4. Profit is the money that a business earns in revenue, minus investments, and the cost of salaries. A) True B) False Points Earned: 0.0/2.0 Correct Answer(s): False Correct…
pharmacy business and knowing the start up requirements, you will be able to make it big and earn big! Pharmacies are very important business establishments in a community or city because this is where people buy drugs and other medical supplies needed especially for home medications, hospitals, or emergencies. Some pharmacies are accessible 24 hours while some are open for a certain time of the day Pharmacies are varying in demand anywhere that is why this can also be a good business idea. People…
Foundation for Free Enterprise Summer Business Camp 2013 BUSINESS PLAN COMPETITION Rules and Guidelines OVERVIEW As you may have learned already, the ‘entrepreneurial spirit’ is the key driver of sustainable business growth, the backbone of a free market and is critical for innovation. This competition has been developed to have you gain some hands-on practical knowledge, utilizing the concepts that you have learned through the first portion of our summer program. All businesses MUST be…
Business Plans 7th Period March 4th, 2013 A business plan is a formal document indicating a set of company goals, the plan for achieving those set goals and a description why the management believe that those goals are possible. Business plans are essentially strategic. You will get to a point in the future (usually three to five years out) in time when your business has a different set of resources and abilities as well as greater productivity and increased assets. This plan will show how…