Entrepreneurship Case Study I Assignment

Running head: ENTREPRENEURSHIP
Entrepreneurship
Name of the Student
Name of the University
Authors Note
Course ID

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Table of Contents
Executive Summary:..................................................................................................................4
Industry Analysis.......................................................................................................................6
Industry Size, Growth Rates and Sales projections:..............................................................6
Sales Projections:...................................................................................................................7
Industry Structure:..................................................................................................................7
Nature of Participants:............................................................................................................8
Key Success Factors:..............................................................................................................8
Industry Trends:.....................................................................................................................8
Long-term prospects:.............................................................................................................9
Company Description:...............................................................................................................9
Company History:................................................................................................................10
Mission statement:...............................................................................................................10
Products and Services:.........................................................................................................11
Current status:......................................................................................................................11
Legal status and ownership:.................................................................................................11
Key partners:........................................................................................................................12
Market Analysis:......................................................................................................................12
Market Segmentation and Target Market Selection.............................................................12
Buyer Behaviour:.................................................................................................................15
Competitor Analysis:...............................................................................................................15

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Competitor Analysis Grid:...................................................................................................16
Estimation of annual sales and market share:......................................................................18
The economics of Business:.....................................................................................................20
Revenue Drivers and Profit Margins:..................................................................................20
Fixed and Variable Costs:....................................................................................................22
Operating Leverage and its implications:............................................................................24
Start-Up Costs:.....................................................................................................................24
Break-Even Chart and Calculation:.....................................................................................25
Marketing Plan:........................................................................................................................27
Overall marketing strategy:..................................................................................................27
Product, Price, Promotion and Distribution:........................................................................28
Positioning and points of differentiation:.............................................................................30
Sales Process:.......................................................................................................................30
Sales Tactics:........................................................................................................................31
Design and development plan:.................................................................................................31
Development Status and Tasks:...........................................................................................31
Challenges and Risks:..........................................................................................................32
Projected Development Costs (INSERT TABLES)................................................................33
Proprietary Issues.................................................................................................................34
Operation Plan:.........................................................................................................................34
General Approaches to Operations:.....................................................................................34

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Organization and Management:...........................................................................................35
Health and safety plan:.........................................................................................................35
Environmental impact:.........................................................................................................36
Milestones............................................................................................................................36
Business locations;...............................................................................................................37
Facilities and equipment:.....................................................................................................37
Management team and company structure:..............................................................................38
Management Team:..................................................................................................................38
Management team gaps:...........................................................................................................39
Board of Directors:...............................................................................................................40
Board of Advisors:...............................................................................................................40
Company Structure:.............................................................................................................40
Specific Roles and Responsibilities:....................................................................................41
Overall Schedule:.....................................................................................................................42
Financial Projections............................................................................................................43
Important Assumptions:.......................................................................................................44
Projected Profit and Loss:....................................................................................................45
Projected Cash Flow Statement:..........................................................................................46
References:...............................................................................................................................50

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Executive Summary:
MOR & Partners is a start-up organization in Saudi Arabia. The business will be located in
Riyadh. The main business products includes the Real estate constructions, development, and
renovation projects (businesses construction, temporary working offices and ready houses
with variety of units) using the Virtual Reality (VR) technology; (2) Architect & designing
services; (3) Real estate quality and design inspections services; (4) Building materials; (5)
Landscaping and cleaning services. MOE & Partners will be making use of virtual reality
technology on wide variety of its high-quality products and services. The company will be
the one-stop shop for the customers relating to real estate products.
The company will be offering a benchmarked real estate units all across the Saudi Arabia.
The company will be safely balancing the cutting edge feature and positive atmosphere for all
its customers. The service will be provided to customers at unmatched level of customer
attention. The business anticipates a substantial amount of sales growth in the span of three
year. MOE & Partners will specifically target individual purchasers and sellers. MOE &
Partners main set of customers will be the residential customers who will obtain benefit from
unparalleled degree of quality, location and technological amenities. MOE & Partners will
also be marketing the professionals of local area and fresh graduates. These set of buyers
looks for safer, higher quality environments which can foster the type of atmosphere required
for the scholastic and unprofessional success.
The overall marketing strategy of MOR & Partners is to enter in the Riyadh real estate market
where the business can leverage its staff’s current reputation in a long-term contracts based
on excellent service and cost effectiveness. MOR & Partners believes that it is better able to
serve the market than the current operators operating in the market by providing the

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customers with an improved service package at a highly reasonable cost than the current set
of competitors of equivalent size.
MOR & Partners real estate business will be totally departmentalized. The main departments
is the finance, marketing, management, research and development. The co-owners of the
company will be presuming the responsibility of CFO while the other counterparts will be
considered responsible executing the duties of CFO. The company will be undertaking all the
decision in agreement with the mission of the company. The employees will be delegated the
tasks on the basis of their skills possessed by them.
The main sources of funds for the company is bank as the business will be taking a loan of
200,000 to fund for its initial purchase of capital assets. Apart from this there will also be an
owner’s contribution of $50,000 by each of the partners to make a total owners contribution
of $300.000. The owners fund will be simply put into use to purchase the materials and
manage the day-to-day business administrative cost and operational expenditure.
The business recognizes that the key to success of the business is to provide its customers
with the state of art amenities at the competitive price. In order to constantly expand the
ownership of number of units it will maintain a level of profitability for both the company
and its investors.

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Industry Analysis
Industry Size, Growth Rates and Sales projections:
In the last few years the real estate sales in Saudi Arabia and brokerage industry has
seen a growth in revenues by $137 billion and has provided employment to more than
1,085,000 people. There are 859,000 business operating in the market with an average
revenue made by per business stands $160,000. There are several agents that work on the part
time basis. This results in the average wage per employee within the industry of around
$13,000. The wage per employee is further downsized based on the market situation
(Aghazadeh, 2015).
The real estate industry of Saudi Arabia along with its health is viewed as the major
driver for the economy. Several key statistics have portrayed that the sale of new home,
houses in the market and average price of home in the market is tracked on a constant basis
by the reporting agencies. The Saudis have in the recent years have spend their petrodollars
carefully. They have made reinvestment in a larger portion of their funds in real estate and
have encouraged foreign investment.
Earlier the real estate market in Saudi Arabia particularly in Riyadh was in crisis
because of shortage in housing spaces, decline in the price of oil and other necessary factors.
This has led to the application of first mortgage law during 2012 together with seveal
government initiatives in the last few years (Ansoff et al., 2018). The government has also
bought forward the numerous schemes namely the Vision 2030 in order to increase the
foreign direct investment in Saudi Real Estate Market. The ultimate objective of the
government was to increase the foreign direct investment in Saudi Real Estate Market. The
government aims at improving the presence of affordable housing for the Saudi People.

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The market for higher quality under reasonable price apartment units has been
increasing at a faster rate of 6.7% since the introduction of numerous government schemes.
The real estate rates in Riyadh has averaged around $6.97 and $10.78 per square foot during
the fourth quarter of 2019 (Barringer, 2015). The real estate market is witnessing a significant
increase in growth with demands are fuelling in for renovation projects, construction of
apartments, temporary office for working and ready houses. Not only industry participants
are niche of affordable quality living, but they are also capitalizing on the strength of the
present economic development in Riyadh.
Sales Projections:
Sales Projections
X-Axis Label Sales Gross Margin
Year 1 $6,75,000 $3,24,250
Year 2 $7,42,500 $6,82,784
Year 3 $8,16,750 $7,28,061
Industry Structure:
The real estate industry in Riyadh can be broken down in three main segments. These
are as follows;
1. Real-Estate agents: This is regarded as the group of professional customers that are
actual realtors in the area. They operate in the market because they recommend or
require, a home inspection prior to purchase. Conducting an inspection makes a great
sense of business (Baum et al., 2014). These industry participants forces hidden
problems which ultimately becomes ostensible, significantly lowering the chances of
customers getting dissatisfied.
2. Individual purchasers: This group of market participants purchases the inspection in
order to avoid the occurrence of “caveat emptor” which implies that buyer should be