MBA Sports Management

SPORTELLO































2014
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1hls Lhesls ls dedlcaLed Lo my faLher (my besL frlend), who LaughL me how
Lo be confldenL and deal wlLh any slLuaLlon ln llfe and LhaL Lhe besL klnd
of knowledge Lo have ls LhaL whlch ls learned for lLs own sake. lL ls also
dedlcaLed Lo my moLher, who LaughL me LhaL everyLhlng ls doable wlLh
hard work, she always sald, lf Lhere ls a wlll, Lhere ls a way". LasLly l
would dedlcaLe Lhe Lhesls Lo my glrlfrlend for her conLlnuous supporL,
and help Lo research for my Lhesls. l love you and always wlll.



Acknow|edgements


llrsL and foremosL, l have Lo slncerely Lhank my parenLs for Lhelr love and supporL
LhroughouL my llfe. 1hank you boLh for glvlng me sLrengLh Lo chase my dreams. My
slsLers deserve my slncere Lhanks as well. My glrlfrlend's belng by my slde Lhrough
Lhe hlgh and low polnLs of my llfe, Lhank you.

l would llke Lo slncerely Lhank my supervlsor, rof. edro ulaz, for hls guldance and
supporL LhroughouL Lhls Lhesls. Pls commenLs, quesLlons and conLrlbuLlon were very
beneflclal ln my compleLlon for Lhls Lhesls and Lhe whole program. l learned from hlm
a loL. l would also llke Lo Lhank rof. Mlguel lnlesLa for hls conLlnuous supporL.

1o all my frlends and colleagues, l would llke Lo hlghly Lhank you for your
undersLandlng and encouragemenL ln a loL of momenLs of my chaos and crlsls. lor Lhe
frlends l made aL Lhls program, l haven'L spenL Lhe mosL Llme wlLh all of you, buL l
deflnlLely have spenL Lhe besL experlence of my llfe wlLh all of you. l cannoL llsL all Lhe
names here, buL you are always on my mlnd.

l belleve LhaL Lhesls ls only a beglnnlng of my [ourney.
1hank you unlversldad Luropea ue Madrld, and Lhank you 8eal Madrld.

Lxecut|ve Summary

1hls Lhesls provldes an evaluaLlon of Lhe lnlLlal buslness poLenLlal of a new appllcaLlon
buslness ldea aL Lhe concepLual sLage. 1he buslness ldea ls founded ln Lhe creaLlon of a
new web-based sporLs organlzlng appllcaLlon. 1he appllcaLlon ls golng Lo be called
SporLello". 1he concepL alms Lo faclllLaLe, process and sLrucLure worldwlde sporLs
games wlLhln a communlLy. SporLello wlll be able Lo provlde an efflclenL, affordable and
dlfferenLlaLed Lool Lo organlze sporLlng games LhaL lnclude soccer, baskeLball, volleyball,
Lennls and many more.

ln an ldeal world, sporLs players would wanL Lo be able Lo play sporLs whenever Lhey
feel llke lL. Powever lL ls very dlfflculL Lo flnd ongolng games wlLh an adequaLe amounL
of players. 1hls can be a problem especlally for sporLs such as soccer and baskeLball
where Lhe number of players ls more Lhan Lhree or four. 1here ls a need and a gap ln
our LargeL markeL regardlng Lhls maLLer. 1hls appllcaLlon wlll acL as a soluLlon for LhaL
problem. SporLs players all around Lhe world wlll have access Lo ongolng games wlLh a
locaLlon!

SporLello would be a medlum for users Lo flnd each oLher and creaLe games ln Lhe besL,
fasLesL, and mosL convenlenL way posslble. 1hls appllcaLlon wlll be avallable Lo all
moblle phone users across Lhe world Lhrough Androld and Apple sLores. lL wlll also be
avallable ln Lhe form of a webslLe for users wlLh lapLops and compuLers.

1he way Lhls appllcaLlon wlll work ls very easy and convenlenL. 1he user wlll be able Lo
creaLe a game and lnvlLe whomever Lhey wlsh Lo [oln Lhelr game. Lven wlLhouL an
lnvlLaLlon, oLher users can choose Lo [oln Lhe game based on Lhe locaLlon and quallLy of
players. 1he creaLor of Lhe game can also resLrlcL LhaL game Lo cerLaln amounL of
players lf Lhe creaLor wlshes.

1hls appllcaLlon wlll be connecLed and reglsLered Lhrough lacebook ln order Lo acqulre a
larger number of daLabase users. lL ls also convenlenL, as every user wlll have access Lo
lacebook conLacLs LhaL may be uslng Lhls appllcaLlon. 8y havlng lacebook as Lhe
mlddleman, user frlendllness and accesslblllLy can be easlly achleved.

1hroughouL Lhls Lhesls, we wlll be able Lo deLermlne Lhe success or proflLablllLy of
SporLello. 1hls ls golng Lo be done Lhrough an lnLernal and exLernal analysls of SporLello,
a flnanclal plan and a markeLlng plan.



*+,-.

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S.S.1. PESTEL Analysis ________________________________________________________________________ 7
S.S.2. Poitei's Five Foices Nouel __________________________________________________________ 1u
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S.4.1. SW0T __________________________________________________________________________________ 12
S.4.2. value Netwoik ________________________________________________________________________ 1S
S.4.S. value Chain ___________________________________________________________________________ 14
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1
1. rob|em Def|n|t|on

Pave you wanLed Lo play soccer on a sunny day when you dldn'L have any work, buL you
couldn'L flnd anybody Lo play wlLh and Lhere were no games golng on aL your
nelghborhood courLs? 1he problem ls LhaL Lhere are probably a loL of oLher people LhaL
llve nearby who are also faclng Lhe same problem and would love Lo play. Powever,
Lhese people [usL do noL know abouL each oLher and do noL have Lo geL a game golng.

ln such cases, whaL ls needed ls a beLLer way Lo help people play Lhose games, a
plaLform LhaL's focused noL only on plckup as a unlque klnd of acLlvlLy, buL LhaL brlngs
LogeLher people who Lyplcally play plckup anyway, and would play more ofLen lf
knowlng abouL Lhe plckup games ln Lhelr area were made easler. AnoLher problem ls
Lhe quallLy of players LhaL may show up Lo plck up games. 1herefore, lL would be much
more convenlenL lf Lhe organlzer can plck and choose Lhe quallLy of players showlng up
Lo Lhelr games.
1he Lhlng abouL plckup games ls LhaL a loL of lnsLances lL ls noL recurrlng and lL ls noL
wlLh frlends. Powever, Lhls ls noL a blg lssue as Lhe preferences vary. A loL of people are
noL very parLlcular abouL playlng wlLh frlends. 8uL Lo Lhose whom Lhls ls an lssue, Lhe
appllcaLlon wlll have a feaLure focused on faclllLaLlng Lhe organlzaLlon of plckup games
Lhrough connecLlng frlends Lhrough soclal medla neLworks and address books on Lhelr
phones. And Lo Lhose whom lL ls noL an lssue, Lhere wlll be Lhe opLlon of connecLlng
people who don'L know each oLher for a one-Llme game.







2
2. roduct Cverv|ew


lL ls an appllcaLlon and webslLe LhaL would glve access Lo users Lo flnd each oLher and
creaLe sporLlng games ln Lhe besL, fasLesL and mosL convenlenL way posslble. lL wlll
lnvolve sporLs from all around Lhe world. 1he way lL works ls LhaL a user creaLes a game
and resLrlcLs Lhe game Lo a cerLaln amounL of players lf Lhe creaLor wlshes. 1hey pln Lhe
locaLlon on Coogle maps and Lhey can elLher enable Lhe [olnlng by requesL or make lL
open. WhaL ls meanL by requesL ls LhaL Lhe creaLor musL approve each player LhaL
wlshes Lo [oln or lf a player recelved an lnvlLaLlon from Lhe creaLor.

Lach player reglsLered wlLh SporLello would have access Lo oLher player's overall raLlng.
8aLlngs wlll be based on speclflc crlLerla and characLerlsLlcs LhaL would be ouL of Len.
1hese characLerlsLlcs wlll lnclude sLamlna, Llmlng, sporLsmanshlp, passlng, shooLlng,
aLLacklng, defendlng and poslLlons played for each sporL. 1hese raLlngs can be made
lndlvldually once a user reglsLers and ls Lhen made by oLher users who have
encounLered Lhe player ln games. 1hese raLlngs are helpful because Lhe creaLor can
deLermlne whom Lo approve for each game and Lhe players Lhemselves can deLermlne
wheLher or noL Lhey wlsh Lo [oln a speclflc game based on Lhe creaLor's raLlngs. 1he
slLuaLlon ls also applled vlce versa for Lhe creaLor as well.

When reglsLerlng wlLh Lhe appllcaLlon, Lhe user wlll be able Lo creaLe a personal proflle
LhaL lncludes: daLe of blrLh, poslLlon played, naLlonallLy, plcLure, self-level raLlng,
gender, helghL and welghL. When creaLlng a game, Lhe creaLor would have Lo lnpuL
speclflc lnformaLlon such as daLe, Llme, prlce, wheLher lL's a LournamenL or frlendly
game and speclal lnsLrucLlons such as Lhe color of a shlrL Lo be worn Lo Lhe game.

1he appllcaLlon/webslLe wlll also have a chaL lnLerface where Lhe users can connecL Lo
chaL and dlscuss more speclflcs. Powever, slnce lL wlll be dlfflculL Lo acqulre a large
memory daLabase, Lhe chaLs wlll noL be saved, buL wlll remaln for Lhe duraLlon of Lhe

S
conversaLlon. SporLello wlll be connecLed Lhrough lacebook ln order Lo have access Lo
personal conLacLs and because lL ls more user frlendly and convenlenL. lL wlll also be
synced wlLh Lhe user's dlglLal calendar for game remlnders. 1he appllcaLlon would be
downloaded Lhrough Androld app sLore and Apple app sLore and would be accesslble Lo
all reglons. SporLello would also be avallable ln many languages lncludlng Lngllsh,
lrench, Spanlsh, Arablc, Mandarln and urdu.

4
3. 8us|ness Mode| Canvas:














S
4. Cb[ect|ves:

! CeneraLe new revenue.
! Crow a cusLomer base.
! Plgh quallLy developmenL skllls.
! SLraLeglc plannlng and seLLlng up Lhe proper parLnershlps.
! SLrong Lechnology.
! 8apld developmenL and peneLraLlon of markeL Lo enhance vlslblllLy Lo poLenLlal
acqulrers.
! CreaLe a pracLlcal yeL affordable appllcaLlon.
! Make playlng sporLs easler.
! Make playlng sporLs more convenlenL.
























6
S. Strateg|c Ana|ys|s



S.1. M|ss|on and V|s|on

SporLello ls golng Lo be Lhe mosL compleLe moblle appllcaLlon and webslLe for sporLlng
plck up games and organlzed leagues. lL wlll faclllLaLe Lhe conLrol and lnLerface wlLh any
Lype of hardware equlpmenL. 1he purpose ls Lo provlde a moblle appllcaLlon Lo help
users creaLe Lhelr own sporLlng games and glve access Lo users Lo flnd each oLher ln Lhe
besL, fasLesL and mosL convenlenL way posslble.



S.2. Strateg|c Cb[ect|ves

! lncrease SporLello's markeL share.
! CverLake key rlvals on quallLy and producL performance.
! ALLaln lover overall cosLs.
! Achleve Lechnologlcal superlorlLy.
! CapLure aLLracLlve growLh opporLunlLles.
! CaLer Lo a broad range of cusLomers and focus on a parLlcular segmenL.
! ConLlnued growLh.
! keen observaLlon of cusLomer needs.
! CeLLlng Lhe organlzaLlon Lo execuLe sLraLegy proflclenLly and efflclenLly.










7
S.3. Lxterna| Ana|ys|s

S.3.1. LS1LL Ana|ys|s

LS1LL analysls sLands for "ollLlcal, Lconomlc, Soclal, and 1echnologlcal, LnvlronmenLal
and Legal analysls". lL ls a parL of Lhe exLernal analysls when conducLlng a sLraLeglc
analysls or dolng markeL research and glves a cerLaln overvlew of Lhe dlfferenL macro
envlronmenLal facLors LhaL Lhe company has Lo Lake lnLo conslderaLlon.

o||t|ca|: Slnce Lhe buslness ldea ls only concerned wlLh Lhe creaLlon of an appllcaLlon
and a webslLe, Lhere are no slgnlflcanL pollLlcal lssues Lo be addressed regardlng Lhe
maLLer.

Lconom|c: As a baslc buslness ldea, lf lL was Lo brlng ln money, lL was deLermlned LhaL
Lhe appllcaLlon needs Lo be free. 1hls ls due Lo Lhe reason LhaL mosL consumers are
unwllllng Lo pay for mosL apps, and mosL app developers need Lo make money
somehow. lL appears LhaL Lhe pald apps markeL ls on Lhe verge of dlsappearlng ln
comparlson Lo Lhe markeL for free apps LhaL Lhen have ln-app purchases. 8esearch
shows LhaL a hlgher percenLage of users are downloadlng free apps raLher Lhan pald
apps. 1hls demands LhaL SporLello should be a free appllcaLlon.



8
Soc|a|: users usually do noL llke appllcaLlons where personal lnformaLlon ls collecLed.
1herefore, SporLello should ensure LhaL Lhe appllcaLlon collecLs mlnlmal daLa abouL lLs
users. Powever, when logglng lnLo a Lhlrd parLy slLe such as lacebook, Lhe app does noL
sLore anL logln lnformaLlon provlded by each parLy. As wlLh many apps, Lhe App may
also record lnformaLlon abouL Lhe user's locaLlon ln order Lo coordlnaLe wlLh game
locaLlons avallable. 1hls lnformaLlon should only be used for lnLernal usage reporLs and
should never be shared wlLh ouLslde parLles.


1echno|og|ca|: ComplexlLy - and Lhe facL LhaL all Lhese componenLs are monlLored ln
dlfferenL sllos - also makes lL hard Lo manage a buslness servlce or appllcaLlon as a
whole, whlch also lmpacLs performance. AppllcaLlon complexlLy ls one of Lhe blggesL
facLors lmpacLlng appllcaLlon performance. 1oday's appllcaLlons and servlces,
parLlcularly Lhose dellvered vla Lhe Web, are a mosalc of componenLs sourced from
mulLlple places: daLa cenLer, cloud, and Lhlrd-parLy, eL al. Whlle Lhe cusLomer or
employee looklng aL a browser wlndow sees a slngle appllcaLlon, mulLlple movlng parLs
musL execuLe ln Lhe expecLed manner Lo dellver a greaL end-user experlence. Maybe Lhe
Web server and app server are runnlng flne, buL lf Lhe daLabase ls falLerlng, user
experlence wlll suffer. 8elng able Lo measure and keep Labs on all Lhose movlng parLs ls
Lhe challenge and requlres an AM Lool LhaL can provlde a vlew lnLo Lhe performance of
all Lhe parLs, noL [usL lndlvldual componenLs. lurLhermore, Lhe neLwork on whlch Lhe
appllcaLlon ls used lmpacLs performance Lremendously, especlally for moblle and cloud.
lnconslsLenL bandwldLh, hlgh [lLLer, lncreased laLency and packeL loss all work Lo
degrade appllcaLlon performance. AppllcaLlon performance has been lmpacLed severely
by whaL ls now known as Lhe "chronlc change and conflguraLlon managemenL
challenges" - a blg daLa problem wlLh lack of acLlonable lnslghL lnLo changes ln Lhe l1
envlronmenL. A Lyplcal appllcaLlon lncludes hundreds of Lhousands of dlfferenL
conflguraLlon parameLers and ls sub[ecL Lo numerous changes. 1he volume, veloclLy,
and varleLy of conflguraLlon changes overwhelm l1 operaLlons. 1hls ls especlally Lrue

9
when conslderlng LhaL any mlnuLe mlsconflguraLlon can cause a hlgh lmpacL appllcaLlon
performance and avallablllLy lncldenL.

Lnv|ronmenta|: SporLello ls an appllcaLlon LhaL creaLes and organlzes sporLlng games
beLween users. SporLlng games are played elLher lndoor or ouLdoor dependlng on Lhe
preference. 8uL wlLh counLrles wlLh exLreme cold or hoL weaLher, lL wlll be dlfflculL Lo
hosL games ouLslde. WeaLher change ls a huge facLor affecLlng Lhe way Lhe appllcaLlon
operaLes. A parLlcular spec ln Lhe appllcaLlon ls chooslng or flndlng a venue Lo hosL Lhe
game. 8uL wlLh counLrles where lL ls very hoL Lo play ouLslde or havlng snow mosL of Lhe
year, Lhe number of venues ls llmlLed Lo lndoor courLs whlch makes lL very resLrlcLed.


Lega| Ana|ys|s: 1he Lwo maln areas of common conLenLlon LhaL app users and revlewers
look Lo are app fees (are Lhey fully dlsclosed aL Lhe Llme of download and ln your Lerms
of use?) and daLa prlvacy pollcles (whaL user lnformaLlon ls collecLed and shared wlLh
oLhers, and was lL dlsclosed and consenLed Lo ln advance?). Whlle regulaLlon ln Lhe
moblle markeL ls ln lLs lnfancy, onllne apps can fall under Lhe scruLlny of LruLh-ln-
adverLlslng and daLa prlvacy laws whlch are regulaLed by Lhe lederal 1rade
Commlsslon's (l1C) 8ureau of Consumer roLecLlon.
lf your LargeL markeL lncludes chlldren, learn more abouL Lhe Chlldren's Cnllne rlvacy
roLecLlon AcL LhaL governs lnformaLlon LhaL onllne buslnesses (and moblle apps) collecL
abouL chlldren under Lhe age of LhlrLeen.
As for Lhe webslLe, Lhere are copyrlghL concerns LhaL have Lo comply wlLh Lhe CopyrlghL
AcL. uomaln names should comply lnLernlC. And Lo avold Lrademark concerns, Lhe
Lrademark should be reglsLered Lhrough a federal Lrademark reglsLraLlon.






1u
Suppliei's Powei: Low

" Inputs have little impact on cost
" Low concentiation of supplieis
" Biffeientiation of inputs

Buyei's Powei: Bigh

" Low buyei piice sensitivity
" Piouuct is impoitant to
customei
" Piouuct uiffeientiation

New Naiket Entiants: Noueiate

" Stiong uistiibution netwoik
iequiieu
" Auvanceu technologies aie
iequiieu
" Economies of scale

Substitutes: Low

" Substantial piouuct
uiffeientiation
" Limiteu numbei of substitutes
S.3.2. orter's I|ve Iorces Mode|








































Competitive Rivaliy: Low

" Relatively few competitois
" Noueiate customei loyalty
" Fixeu costs
" Segmenteu maiket
" Small inuustiy size

11
Supp||er's ower
When lnpuLs are noL a blg componenL of cosLs, suppllers of Lhose lnpuLs have less
bargalnlng power. Low cosL lnpuLs poslLlvely affecL SporLello. A low concenLraLlon of
suppllers means Lhere are many suppllers wlLh llmlLed bargalnlng power. Low
concenLraLlon of suppllers poslLlvely affecLs SporLello.

New Market Lntrants
Advanced Lechnologles make lL dlfflculL for new compeLlLors Lo enLer Lhe markeL
because Lhey have Lo develop Lhose Lechnologles before effecLlvely compeLlng. 1he
requlremenL for advanced Lechnologles poslLlvely affecLs SporLello.

Compet|t|ve k|va|ry
lew compeLlLors mean fewer flrms are compeLlng for Lhe same cusLomers and
resources, whlch ls a poslLlve for SporLello. noL many are aware of Lhe problem and very
few are Lrylng Lo solve lL.

Subst|tutes
When producLs and servlces are very dlfferenL, cusLomers are less llkely Lo flnd
comparable producL or servlces LhaL meeL Lhelr needs. 1hls ls a poslLlve for SporLello. A
llmlLed number of subsLlLuLes mean LhaL cusLomers cannoL easlly flnd oLher producLs or
servlces LhaL fulflll Lhelr needs. LlmlLed subsLlLuLes are a poslLlve for SporLello.

8uyer's ower
When buyers are less senslLlve Lo prlces, prlces can lncrease and buyers wlll sLlll buy Lhe
producL. lnelasLlc demand poslLlvely affecLs SporLello. When cusLomers cherlsh
parLlcular producLs Lhey end up paylng more for LhaL one producL. 1hls poslLlvely affecLs
SporLello.





12
S.4. Interna| Ana|ys|s

S.4.1. SWC1

A SW0T Analysis is a planning methou useu to evaluate the stiengths, weaknesses,
oppoitunities anu thieats associateu with a given company oi piouuct, by
pinpointing the inteinal anu exteinal factois that may be helpful oi haimful to the
company oi piouuct. In the case of Spoitello, the following has been iuentifieu:






Belpful Baimful
I
n
t
e
i
n
a
l

J:2-+K:QC Y-EP+-CC-C

" Fast anu easy access to maikets
" Availability of skilleu uevelopeis
" Ease of uevelopment with
launch of easiei to use platfoims
" Innovative iueas


" uevelopers need Lo learn new
operaLlng sysLems
" SecurlLy lssues
" roducL only LargeLed aL a
segmenLed audlence


E
x
t
e
i
n
a
l

'TT32:=+9:9-C $Q2-E:C

" Crowlng markeL wlLh poLenLlal
" uemand for appllcaLlons lncreases
day by day.


" Average selllng prlce ls
decreaslng
" ln some counLrles, carrlers
have conLrol over Lhe
dlsLrlbuLlon of appllcaLlons.

1S

S.4.2. Va|ue Network

lL ls a buslness analysls LhaL descrlbes Lhe relaLlons beLween dlfferenL agenLs and
enLlLles ln a glven buslness envlronmenL. lL ls mosL useful Lo undersLand Lhe lmporLance
of Lhe dlfferenL sLakeholders lnslde a company as parL of a neLwork. SporLello's currenL
sLakeholders are:



NE5=- Z-:@32P
)35-
7-C>29T:93+ 13CC945-
%.E6T5-C
1E2:+-2C E+,
JT3+C32C
Companies with sponsoiship anuoi paitneiship
with Spoitello.
venues, spoiting
goous, local
businesses
&-,9E They affect the usei's peiception of the piouuct
itself.
Newspapeis, spoit
magazines,
websites, social
meuia
B3E2, &-64-2C
E+, %6T53L--C
Responsible foi the uaily management of the
piouuct's opeiations
Piesiuent, vice-
piesiuents,
uevelopeis
(C-2C They aie the ones iesponsible of getting the
piouuct going. Without them, theie woulu me no
piouuct.
Nobile phone
useis anu laptop
useis







14

S.4.3. Va|ue Cha|n

It is an analysis methou consisting into sepaiating the opeiations of a given
company into a chain of activities that the company peifoims in oiuei to uelivei a
valuable piouuctseivice foi the maiket. The opeiations that Spoitello peifoims in
oiuei to maiket its bianu aie the following:



































provenmodels
value chain template
technological development
human resource management
firm infrastructure
procurement
i
n
b
o
u
n
d


l
o
g
i
s
t
i
c
s

o
p
e
r
a
t
i
o
n
s

o
u
t
b
o
u
n
d

l
o
g
i
s
t
i
c
s

m
a
r
k
e
t
i
n
g


&

s
a
l
e
s

s
e
r
v
i
c
e

m
a
r
g
i
n

m
a
r
g
i
n

support
activities
primary activities
source: Michael Porter, competitive advantage

1S
- r|mary Act|v|t|es:





1) Interna| Log|st|cs:
- 1hls lncludes venue research, appllcaLlon
developlng and user lnLerface.
-SofLware ls malnLalned everyday.

2) Cperat|ons:
- AcLlvlLles relaLed Lo Lhe producLlon of producLs
and servlces.
- MalnLenance of appllcaLlon and webslLe.


3) Lxterna| Log|st|cs:
-AcLlvlLles concerned wlLh dlsLrlbuLlng Lhe flnal
producL or servlce Lo cusLomers.
-Specs are groomed o Lhe user's preferences.



4) Market|ng:
! MarkeL lnformaLlon sysLems.
! knowledge of compeLlLlon.
! lannlng.
! SLrucLure of cllenL porLfollo.
! roducL pollcy.
! rlclng pollcy.
! ulsLrlbuLlon channels.
! Sales neLworks.
! MarkeLlng, promoLlon, and sponsors.
! ulrecL markeLlng.
! SysLems Lo creaLe cusLomer loyalLy.
! Analyses Lhe needs and wanLs of cusLomers and ls
responslble for creaLlng awareness among Lhe
LargeL audlence of Lhe company abouL Lhe flrm's
producLs and servlces.

CusLomer Servlce
- 1he whole experlence ls based upon hlgh quallLy,
professlonal servlce and meeLlng user's needs.


16

- Support Act|v|t|es:







Supp||es
! CosL of developlng.
! CosL of auxlllary
maLerlals.
Structure and Management
! Shared values, buslness
culLure.
! CrganlzaLlonal sLrucLure.
! llexlblllLy.
! ManagemenL sLyle.
! CorporaLe
communlcaLlons.
! lnLernal
communlcaLlons.
Adm|n|strat|on
! AnalyLlcal
accounLlng.
! ManagemenL
conLrol.
! 1reasury
managemenL.
Systems
! ueclslon-
maklng and
conLrol
sysLems.
! lnformaLlon
handllng
sysLems.
I|nanc|a| and Infrastructure
kesources
! llnanclal 8esources.
! Slze.
! LocaLlon.
!"#$% '$%!
! Lxperlence curve.
! 8+u, producL
lnnovaLlon.
! 1echnology, process
lnnovaLlon.
numan kesources
! AuLo-renewal.
! ManagemenL of
lnLellecLual caplLal:
selecLlon, Lralnlng, and
evaluaLlon.
! roducLlvlLy.
! lnLernal
communlcaLlon.

17
6. Market|ng |an

MarkeL research analysls ls conducLed ln order Lo gaLher as much lnformaLlon as we can
on Lhe LargeL markeL. 1hls research wlll be dlvlded lnLo Lhree parLs. 1he flrsL wlll be Lhe
markeL segmenLaLlon, Lhe second wlll be Lhe markeL research and Lhe Lhlrd wlll be Lhe
markeLlng mlx.

6.1. Market Segmentat|on

We wanL Lo deLermlne whlch Lypes of cusLomers would be lnLeresLed ln our producL so
we can LargeL Lhem dlrecLly Lhrough our markeLlng channels. 1he four baslc markeL
segmenLaLlon sLraLegles are based on:
- 8ehavlor (raLe of usage, loyalLy sLaLus, readlness Lo purchase eLc.,)
- uemographlcs (age, gender, occupaLlon, soclo-economlc group eLc.,)
- sychographlcs (personallLy, llfesLyles eLc.,)
- Ceography (cusLomer locaLlon, reglon eLc.,)

1he one we are uslng ls uemographlcs. Cur segmenLaLlon ls as follows:
-Men: Lhls moblle app ls LargeLed Lowards users who play sporLs on a regular basls.
Slnce Lhe percenLage for dedlcaLed men playlng sporLs, especlally plck up sporLs ls
hlgher Lhan women, men wlll be ouL flrsL LargeL.
- Women: anoLher focus would be on women who play sporLs.
- users who own an lhone/lad or any smarL phone: qulLe loglcal ln order Lo use an
app.
- LocaLlon: worldwlde: all of Lhe app conLenL and Lhe webslLe are lnlLlally wrlLLen ln
Lngllsh, Lhus undersLandable for everybody. Powever, Lhere wlll be oLher language
opLlons.




18
6.2. Market kesearch

now LhaL we have deflned our markeL segmenLaLlon, we wanL Lo perform a prlmary
markeL research Lo gaLher quallLaLlve and quanLlLaLlve daLa on our markeL nlche. 1he
Lools LhaL are usually used are focus groups, surveys, fleld LesLs and lnLervlews. rlmary
research ls usually based on sLaLlsLlcal meLhodologles LhaL lnvolve sampllng as llLLle as 1
percenL of a LargeL markeL. 1hls Llny sample can glve an accuraLe represenLaLlon of a
parLlcular markeL. 1he focus of our prlmary markeL research was Lo see lf our ldea of a
brand-lndependenL and fully cusLomlzable moblle appllcaLlon for organlzlng sporLlng
evenLs was appeallng Lo our markeL segmenLaLlon.

1he prlmary research meLhod used was lnLervlewlng lnLeresLed users ln person and
Lhrough soclal medla. Cur sample of parLlclpanLs comblned from Lhe onllne surveys and
personal lnLervlews LoLaled Lo up Lo 73. 1he quesLlons asked were as follows: -

- When organ|z|ng games or want|ng to be part of a game, do you face
d|ff|cu|t|es f|nd|ng p|ayers and appropr|ate venues?



















19
8S% saiu Yes 1S% saiu No
-Wou|d you rather have an app||cat|on to organ|ze a|| your sport|ng
events, f|nd venues and f|nd users |nstead of do|ng |t manua||y?


























8ased on Lhe resulLs gaLhered, developlng and launchlng Lhe appllcaLlon would be based
on Lhe needs of Lhe markeL. Lven Lhough Lhe sample of parLlclpanLs ls noL LhaL blg, Lhe
resulLs gaLhered were very lmporLanL. 1he sample conslsLed of lndlvlduals who play
sporLs on a regular basls and are lnvolved ln leagues and plckup games.







2u
6.3. Market|ng M|x


1he markeLlng mlx and Lhe 4 s of markeLlng are ofLen used as synonyms for each oLher.
"MarkeLlng mlx" ls a general phrase used Lo descrlbe Lhe dlfferenL klnds of cholces
organlzaLlons have Lo make ln Lhe whole process of brlnglng a producL or servlce Lo
markeL. 1he 4s are: -
*roduct:
-(')* +$,- *', ./-*$0,1 %)#* 21$0 *', 31$+/.*4-,156.,7 (')* #,,+- +$,- 6*
-)*6-287 1he cusLomer would wanL Lhls appllcaLlon Lo help organlze sporLlng games
and Lo flnd sulLable players for Lhe games. 1he needs belng saLlsfled are
convenlence, Llmellness and quallLy.
-(')* 2,)*/1,- +$,- 6* ')5, *$ 0,,* *',-, #,,+-7
When organlzlng a game, you can pln Lhe locaLlon and players can show up. ?ou can
also plck and choose whaL players you wanL based on quallLy. ?ou can also process
Lhe game ln a way where lL ls open Lo everyone dependlng on preference.

9:1, 8$/ 6#.;/+6#< .$-*;8 2,)*/1,- *')* *', ./-*$0,1 %$#=* ).*/);;8 /-,7
no, all Lhe feaLures would be equal for all users.

9>$% )#+ %',1, %6;; *', ./-*$0,1 /-, 6*7 lL could be used anywhere Lhrough a
smarL phone or a LableL or log ln Lhrough Lhe webslLe from a compuLer or lapLop.

*|ace:
9(',1, +$ ?/8,1- ;$$@ 2$1 8$/1 31$+/.* $1 -,156.,7 roducL can be found Lhrough
Apple and Androld sLores and ls dlrecLly downloaded Lo Lhe devlce.
9A$ 8$/ #,,+ *$ /-, ) -);,- 2$1.,7 B1 )**,#+ *1)+, 2)61-7 Cr make onllne
submlsslons? Cr send samples Lo caLalogue companles? no, LhaL ls noL requlred.

21

*r|ce:
-(')* 6- *', 5);/, $2 *', 31$+/.* $1 -,156., *$ *', ?/8,17 C);/, 6- 5,18 '6<' )- 6*
provldes a unlque servlce LhaL wlll solve an exlsLlng problem.

-:1, *',1, ,-*)?;6-',+ 316., 3$6#*- 2$1 31$+/.*- $1 -,156.,- 6# *'6- )1,)7 no, Lhere
are no esLabllshed prlce polnLs ln Lhls area.

D- *', ./-*$0,1 316., -,#-6*65,7 (6;; ) -0);; +,.1,)-, 6# 316., <)6# 8$/ ,E*1) 0)1@,*
-')1,7 B1 %6;; ) -0);; 6#.1,)-, ?, 6#+6-.,1#6?;,F )#+ -$ <)6# 8$/ ,E*1) 31$26*
0)1<6#7 AL Lhls polnL, cusLomer ls prlce senslLlve as Lhe producL ls sLlll belng
lnLroduced. 1herefore, Lhe download of Lhe appllcaLlon wlll be for free.


*romot|on:
re-launch promoLlon Lhrough varlous guesL posLs, Leaser vldeos, press releases,
lnLervlews and parLlclpaLlng ln moblle app evenLs. 1he app wlll be release ln phases.
llrsLly, Lhere wlll be a free verslon Lo geL as much downloads as posslble. 1hen lf lL were
a success, a mlnlmal cosL would be assoclaLed wlLh each download. Also, Lhere wlll be
Lhe usage of ln-app adverLlsemenLs. AdverLlslng ln few popular apps/games when
carved ouL lnLelllgenLly, would help drlve good amounL of Lrafflc Lo Lhe app. 1hen, a
focus group analysls of Lhe app and subsequenLly, geLLlng lL revlewed by few popular
Lechno blogs or slLes of Lhe reglon can geL Lhe word Lhrough. lL acLually plays ma[or role
ln lnfluenclng large amounL of audlence. Soclal medla wlll also be lnLegraLed lnLo Lhe
process. 1he campalgn needs Lo be promoLed across all Lhe posslble channels, wlLh Lhe
ma[or four essenLlals belng lacebook, 1wlLLer, ?ou1ube and Llnkedln.




22
7. Cperat|ons and numan kesources |an

P8 plannlng ls an lmporLanL componenL of sLraLeglc P8 managemenL. lL llnks P8
managemenL dlrecLly Lo Lhe sLraLeglc plan of your organlzaLlon. SLraLeglc P8 plannlng
predlcLs Lhe fuLure P8 managemenL needs of Lhe organlzaLlon afLer analyzlng Lhe
organlzaLlon's currenL human resources, Lhe exLernal labor markeL and Lhe fuLure P8
envlronmenL LhaL Lhe organlzaLlon wlll be operaLlng ln 1aklng Lhe Llme Lo forecasL fuLure
hlrlng needs wlll save Llme and money ln Lhe long-run. 1he success of SporLello ls
dlrecLly llnked Lo Lhe performance of Lhose who work for SporLello. Plrlng Lhe wrong
people or falllng Lo anLlclpaLe flucLuaLlons ln hlrlng needs can be cosLly, lL ls lmporLanL
LhaL efforL ls puL lnLo human resource plannlng.
lannlng for P8 needs wlll help Lo ensure LhaL employees have Lhe skllls and
compeLencles Lhe buslness needs Lo succeed. An P8 plan works hand ln hand wlLh Lhe
buslness plan Lo deLermlne Lhe resources needed Lo achleve Lhe buslness's goals.
1hlngs Lo be consldered:
-WhaL are our goals and ob[ecLlves?
-Are changes ln Lechnology necessary Lo sLay compeLlLlve?
-Wlll new skllls and/or Lralnlng be requlred Lo meeL Lhe company's goals and ob[ecLlves?
1hlngs Lo be ldenLlfled:
1. ldenLlfy 8uslness SLraLegy and needs
2. !ob uescrlpLlon
3. leaslblllLy of Plrlng

2S
Step 1: Ident|fy 8us|ness Strategy and Needs
ldenLlfy ressures and CpporLunlLles
CompeLlLlon: We wlll need Lo hlre more sLaff on Lhe long-Lerm ln order Lo
compeLe and lmprove.
1echnology: 1echnologlcal advancemenLs are happenlng by Lhe hour and our
employees need Lo be up Lo daLe.
lncreased demand: lf Lhe demand lncreases for our servlces we mlghL requlre
more resources Lo help dellver our servlces, as pressure wlll lncrease.
Lmployee condlLlon change: We need Lo be aware LhaL we mlghL face
reslgnaLlons, LermlnaLlons, or deaLh.
1he buslness sLraLegy we have wlll lead us Lo greaL expanslon of Lhe pro[ecL wlLhln 3
years. We are expecLlng Lo lncrease sales by 116. 1o do so we wlll have more pressure,
and so we wlll have Lo expand and dlvlde Lasks over more employees. knowlng our goals
and needs wlll help us choose Lhe rlghL candldaLes for our pro[ecL ln Lhe near fuLure and
for years Lo come.
ear1 ear 2 ear 3
Act|v|ty ueslgn and develop
Lhe pro[ecL
MarkeLlng and
sponsor aLLracLlon
Cloballzlng Lhe
servlce and reach
Staff -ueslgner
- ueveloper
-ueslgner
- ueveloper
- MarkeLlng
-ueslgner
- ueveloper
- MarkeLlng
- ubllc 8elaLlons
- Manager

24
IIkS1 LAk IC8S NLLDLD
Step 2: Iob Descr|pt|on #1
- !ob 1lLle: App & Web ueveloper
- !ob 1ype: ro[ecL based
- 8esponslble for creaLlng, developlng, updaLlng and malnLalnlng Lhe appllcaLlon.
- 8eporLs Lo Lhe CLC.
ua||f|cat|on requ|rements:
1. know|edge of at |east 6 of the fo||ow|ng program |anguages:
- C
- C#
- C++
- !ava
- !avaScrlpL
- Cb[ecLlve C
- P
- yLhon
- 8uby
- SCL

2S
2. M|n|mum of 2 years exper|ence |n app & web deve|op|ng
- revlous work on appllcaLlons and webslLes musL be shown.
3. Ab|||t|es requ|red:
- LfflclenL and effecLlve communlcaLlon
- Able Lo work aL a fasL raLe
- 1eam worker
- Can do" aLLlLude
- Cpen Lo urgenL slLuaLlons when exLra hours could be requlred
- MulLl-Lasklng
- Can cope wlLh hlgh-volume
- undersLands how apps work, whaL makes Lhem greaL and how Lo puL Lhem LogeLher so
LhaL Lhey are rellable for a greaL user experlence
- Able Lo work wlLh lCS and Androld.

4. rogramm|ng |anguage Cert|f|cates]D|p|omas (cert|f|ed copy requ|red)
S. Dut|es:
- repare a plan and sLraLegy for Lhe sLeps of developlng Lhe appllcaLlon and presenL lL.
- 8esearch and keep Lhe appllcaLlon up Lo daLe.
- uevelop Lhe appllcaLlon as requlred.
- llx any gllLches or bugs.
- CommunlcaLe wlLh Lhe web/app deslgner LhroughouL Lhe developmenL process.
- 8eply Lo e-malls wlLhln 24 hours.
6. Work hours:

26
1hls wlll be a pro[ecL based, wlLh a salary hence hours are noL Lhe managemenL's
responslblllLy as long as Lhe [ob ls handed ln on Llme.
7. Ava||ab|||ty:
- AugusL 1sL
8. Locat|on:
- Canada or Lhe Mlddle LasL
Se|ect|on Sources:
- lree Lanclng Agencles
- Soclal neLworks (Llnkedln eLc..)
- ersonal uaLabase (ConLacLs)
- App sLore

Screen|ng 1oo|s: narrow CandldaLes Lo 20
- Lxperlence
- rogrammlng Languages
- LocaLlon

Se|ect|on rocess: narrow CandldaLes Lo 10.
- Pievious Piojects


Skype Interv|ew: narrow CandldaLes Lo 4.
- Level of commlLmenL
- Level of preparaLlon
- 1esL Lechnlcal knowledge
- Asses aLLlLude

27
- Salary expecLaLlons

Cn S|te Interv|ew:
- 1esL Lechnlcal knowledge
- Check Lhe prevlous pro[ecLs wlLh candldaLe presenLlng.
- LlsLen Lo ldeas and creaLlvlLy ln developlng Lhe pro[ecL.
- Croup dynamlcs, lnLeracLlng wlLh oLher candldaLes.

I|na| Dec|s|on:
1he flnal declslon wlll be based on Lhe CLC and a speclallsL aLLendlng Lhe Skype and Cn
SlLe lnLervlew. 1he CLC wlll Lake Lhe flnal declslon, alLhough Lhe speclallsL's oplnlon wlll
be vlLal. 1hey wlll boLh be Laklng noLes and Lhey wlll use a raLlng sysLem for Lhe
candldaLes and wlll dlscuss Lhe candldaLes ln deLall afLer.










28
Iob Descr|pt|on #2
- !ob 1lLle: App & Web ueslgner
- !ob 1ype: ro[ecL based
- 8esponslble for deslgnlng and lnnovaLlng Lhe pro[ecL.
- 8eporLs Lo Lhe CLC.
ua||f|cat|on requ|rements:
1. know|edge and app||cat|on of the fo||ow|ng
- uaLabases
- Webpage scrlpLlng
- rogrammlng
- ulglLal lmaglng
- MulLlmedla deslgn
- Web developmenL
- Web deslgn sofLware
2. M|n|mum of 2 years exper|ence |n app & web des|gn
- revlous work on appllcaLlons and webslLes musL be shown.

3. Ab|||t|es requ|red:

29
- LfflclenL and effecLlve communlcaLlon
- 1eam worker
- Can do" aLLlLude
- Cpen Lo urgenL slLuaLlons when exLra hours could be requlred
- MulLl-Lasklng
- Can cope wlLh hlgh-volume
- undersLands how apps work, whaL makes Lhem greaL and how Lo puL Lhem LogeLher so
LhaL Lhey are rellable for a greaL user experlence
- Able Lo work wlLh lCS and Androld deslgnlng.

4. Dut|es:
- repare a plan and sLraLegy for Lhe sLeps of deslgnlng Lhe appllcaLlon and presenL lL.
- Solvlng code problems
- CreaLlng back up flles
- 8esearch and keep Lhe appllcaLlon up Lo daLe wlLh deslgns.
- ueslgnlng webpage layouL
- WrlLlng and edlLlng conLenL
- CommunlcaLe wlLh Lhe web/app developer LhroughouL Lhe developmenL process.
- updaLlng webslLes
- 8eply Lo e-malls wlLhln 24 hours.
- ueLermlnlng Lechnlcal requlremenLs


Su
S. Work hours:
1hls wlll be a pro[ecL based, wlLh a salary hence hours are noL Lhe managemenL's
responslblllLy as long as Lhe [ob ls handed ln on Llme.
6. Ava||ab|||ty:
- AugusL 1sL
7. Locat|on:
- Canada or Lhe Mlddle LasL.
Se|ect|on Sources:
- lree Lanclng Agencles
- Soclal neLworks (Llnkedln eLc..)
- ersonal uaLabase (ConLacLs)
- App sLore

Screen|ng 1oo|s: narrow CandldaLes Lo 13
- Lxperlence
- LocaLlon

Se|ect|on rocess: narrow CandldaLes Lo 6
- revlous ro[ecLs

Skype Interv|ew: narrow CandldaLes Lo 2.
- Level of commlLmenL
- Level of preparaLlon
- 1esL Lechnlcal knowledge

S1
- Asses aLLlLude
- Salary expecLaLlons

Cn S|te Interv|ew:
- 1esL Lechnlcal knowledge
- Check Lhe prevlous pro[ecLs wlLh candldaLe presenLlng.
- LlsLen Lo ldeas and creaLlvlLy ln deslgnlng Lhe pro[ecL.
- Croup dynamlcs, lnLeracLlng wlLh oLher candldaLes.


I|na| Dec|s|on:
1he flnal declslon wlll be based on Lhe CLC and a speclallsL aLLendlng Lhe Skype and Cn
SlLe lnLervlew. 1he CLC wlll Lake Lhe flnal declslon, alLhough Lhe speclallsL's oplnlon wlll
be vlLal. 1hey wlll boLh be Laklng noLes and Lhey wlll use a raLlng sysLem for Lhe
candldaLes and wlll dlscuss Lhe candldaLes ln deLall afLer.

Step 3: Ieas|b|||ty of n|r|ng

We wlll only be hlrlng Lwo candldaLes aL Lhe sLarL of Lhls pro[ecL. 1he cosLs are golng Lo
be llmlLed Lo Lhe Llme of Lhe CLC, Lhe CLC Lravel cosL aL Lhe flnal sLage (lf necessary) and
Lhe fee pald Lo Lhe speclallsL accompanylng Lhe CLC. 1he avallablllLy of developers and
deslgners ln Lhe markeL ls overloaded. 1he [ob posLlngs wlll noL cosL anyLhlng, and Lhe
CLC wlll use hls conLacLs, as he knows a loL of Lop-noLch developers and deslgners.

1he cosLs are wlLhln Lhe pro[ecL's budgeL, and lL ls exLremely feaslble Lo go Lhrough Lhe
hlrlng process of Lhe Lwo needed candldaLes wlLhouL any physlcal or flnanclal
compllcaLlons.


S2
8. I|nanc|a| |an


8.1. ro[ected rof|t and Loss


A pro[ecLed proflL and loss sLaLemenL ls a flnanclal documenL LhaL reflecLs Lhe amounL of
proflL or loss LhaL we expecL our buslness Lo generaLe ln fuLure perlods. 1hls Lool wlll
help us deLermlne wheLher our buslness Lhls buslness wlll be generaLlng proflLs or
losses. 1he proflL and loss sLaLemenL wlll conslsL of our revenues (sales, sponsors eLc..),
our cosL for Lhe servlce provlded, operaLlng expenses (wages, salarles, renL, adverLlslng,
markeLlng, developer accounLs), and our neL lncome or loss.
LlsL of revenue sources:

1) Sales: from ln-app purchases.
2) Sponsors
3) ln-app AdverLlsemenLs
4) number of downloads

LlsL of expenses:
1) CosL of Coods Sold (CCCS): expenses dlrecLly relaLed Lo produclng a servlce. lL
lncludes all Lhe cosLs dlrecLly lnvolved ln dellverlng Lhe servlce. lL wlll measure all Lhe
cosLs dlrecLly assoclaLed wlLh maklng Lhe producL or dellverlng Lhe servlce. (Lxample:
llcenslng fees, commlsslons, credlL card fees, sLorage fees eLc..)
2) ayroll: Wages and salarles.
3) MarkeLlng: All markeLlng expenses Lhe app wlll requlre such as adverLlslng and all Lhe
equlpmenL relaLed Lo lL.
4) WebslLe: 8uylng a domaln (renewlng lL) and Lhe copyrlghLs as well.
3) 1ravel: Any Lravel needed for research, adverLlsemenL or anyLhlng relaLed Lo Lhe
buslness.

SS
6) uues and subscrlpLlons: All Lhe subscrlpLlons we have Lo malnLaln.
7) Llcenslng
8) 8esearch and uevelopmenL


[SporLello]
3 year &L ro[ecLlon























INCOME 2014 % of OI 2015 % of OI 2016 % of OI

Operating Income


Sponsors 1,550 8.3%

3,139 6.5%

12,307 9.1%

In-app Advertisements (non-
converts)
1,174 6.3%

2,820 5.8%

4,330 3.2%

In-app Advertisements
(converts)
11,848 63.8%

24,379 50.3%

66,109 48.6%

In-app Sales 4,000 21.5%

18,150 37.4%

53,206 39.1%

Total Operating Income
(OI)
$18,572 100.0%

$48,488 100.0%

$135,952 100.0%


Non-Operating Income


Gifts Received -

-

2,500


Other 400

2,000

3,500


Total Non-Operating
Income
$400

$2,000

$6,000





Total INCOME $18,972 102.2% $50,488 104.1% $141,952 104.4%

[42] EXPENSES

Operating Expenses


Advertising 3,650 19.7%

6,200 12.8%

6,500 4.8%

COGS 1,620 8.7%

2,200 4.5%

3,320 2.4%

Dues and Subscriptions 775 4.2%

775 1.6%

775 0.6%

Maintenance and Repairs 400 2.2%

960 2.0%

1,450 1.1%

Payroll 4,500 24.2%

5,500 11.3%

10,000 7.4%

Research and Development 200 1.1%

330 0.7%

750 0.6%

Travel 3,000 16.2%

5,200 10.7%

7,500 5.5%

Web Hosting and Domains 232 1.2%

232 0.5%

500 0.4%

Other 350 1.9%

500 1.0%

1,200 0.9%

Total Operating Expenses $14,727 79.3%

$21,897 45.2%

$31,995 23.5%


Non-Recurring Expenses


Equipment and Software 330 1.8%

330 0.7%

1,300 1.0%

Gifts & Awards Given - -

- -

1,700 1.3%

Total Non-Recurring
Expenses
$330 1.8%

$330 0.7%

$3,000 2.2%


Total EXPENSES $15,057 81.1% $22,227 45.8% $34,995 25.7%


Net Income $3,915

$28,261

$106,957









NET INCOME $3,915 $28,261 $106,957

S4
8.2. 8reak-even Ana|ys|s

A break-even analysls ls a key parL of any good buslness plan. lL leLs us know how many
apps we musL sell ln order Lo cover our cosLs. An exLremely slgnlflcanL Lool ln Lracklng
your buslness's cash flow ls a break-even analysls. lL ls also a very useful Lool Lo flgure
ouL Lhe besL prlclng sLrucLure for our producL.
1o calculaLe Lhe break-even and analyze lL we wlll requlre several pleces of lnformaLlon:
1) llxed cosLs: Lhese are cosLs LhaL do noL alLer much from monLh Lo monLh and do noL
depend upon how many apps are sold. ln Lhls slLuaLlon flxed cosLs wlll lnclude Lhe
salarles of Lhe developers and Lhe app sLores enrolmenL fees.
2) varlable cosLs: Lhese are Lhe cosLs LhaL vary dependlng on Lhe sales. ln our case Lhls
wlll be Lhe App sLore commlsslon. We wlll calculaLe Lhe 8LC (break even quanLlLy),
whlch ls Lhe number of unlLs we need Lo sell Lo cover our cosLs.
8LC = llxed CosL / (rlce - varlable CosL).


Break-Even Analysis


2014 2015 2016



Sales
$4,000 $18,150 $53,206


Less Variable Expenses

App Store Commission 30 % $1,200 $5,445 $15,962
Labor $0 $0 $0
Variable overhead $0 $0 $0
Other $0 $0 $0
Contribution Margin
2,800 12,705 37,244
Contribution Margin Ratio
70.00% 70.00% 70.00%

Fixed Expenses

Salaries and wages $4,500 $5,500 $10,000
App Store Enrollment fees $124 $99 $99
Other $0 $0 $0

Total Fixed Expenses
4,624 5,599 10,099
Total Fixed Expenses Ratio
115.60% 30.85% 18.98%
Break-Even Sales
6,606 7,999 14,427

Break-Even %
165.14% 44.07% 27.12%
Operating Profit
(1,824) 7,106 27,145






SS




























Current BE Chart Current Pie Projected BE Chart Projected Pie
Sales $ 4,000 $ Fixed % 115.60% Sales $ 53,206 $ Fixed % 18.98%
Fixed $ 4,624 $ Total Variable % 70.00% Fixed $ 10,099 $ Total Variable % 30.00%
Total Variable $ $2,800 Profit % (85.60%) Total Variable $ $15,962 Profit % 51.02%
Current Projected THE B/E POINT IS IN NEXT YEAR
Sales $ $4,000 $53,206 BECAUSE PROFIT IS NEGATIVE.
Fixed $ $4,624 $10,099
Total Variable $ $2,800 $15,962
Total Variable % 70% 30%
Operating Profit $ ($3,424) $27,145
Break-Even % 385% 27%
BE Dollars $15,413 $14,427
BE Date Nov 06 Apr 07
$0
$1,000
$2,000
$3,000
$4,000
$5,000
$6,000
$7,000
$8,000
0

2
0

4
0

6
0

8
0

1
0
0

Current Break-Even Chart Analysis
Fixed % Total Variable % Profit % Fixed % Total Variable % Profit %
$0
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
0

2
0

4
0

6
0

8
0

1
0
0

Projected Break-Even Chart Analysis

S6
8.3. 8a|anced Scorecard

1he balanced scorecard ls a sLraLeglc plannlng and managemenL performance Lool and
sysLem LhaL we wlll be uslng. lL wlll allow us Lo allgn buslness acLlvlLles Lo Lhe vlslon and
sLraLegy of Lhe company and lL wlll help us monlLor SporLello's performance and lf we
are meeLlng our sLraLeglc goals. We wlll also use lL Lo Lrack Lhe execuLlon of acLlvlLles
and Lhelr consequences.
We wlll be measurlng Lhe:
- Sales growLh percenLage
- ercenLage of revenue from Lhe servlce
- ercenLage of unproflLable cusLomers
- 8evenue per employee
- 8esearch and developmenL as a percenLage of sales
- Lconomlc value
















Financial Metrics
Financial Objective Type Measures Targets Year #1 Targets Year #2
Revenue growth and mix Sales growth percentage 353% 193.00%
Revenue growth and mix Percentage of revenue from the service 162% 181%
Revenue growth and mix Percentage of unprofitable customers Reduce the percentage of unprofitable customers from
12% to 4% by the end of the year.
Reduce the percentage of unprofitable
customers from 4% to 1.8% by the end of
the year.
Cost reduction/productivity Revenue per employee Increase revenue per employee from $15,000 to
$40,000 by the end of the year.
Increase revenue per employee from
$40,000 to $100,000 by the end of the year.
Asset utilization Research and development as a percentage of sales Increase research and development as a percentage
of sales from 7% to 11% by the end of the year.
Increase research and development as a
percentage of sales from 11% to 13% by the
end of the year.
Market performance Economic value added Improve economic value added by 17% by the end of
the year.
Improve economic value added by 39% by
the end of the year.

S7
8.4. Cont|ngency |an

lL ls a buslness plan LhaL ls relaLed Lo ConLlnulLy & 8lsk ManagemenL". lL prepares an
organlzaLlon, buslness or governmenL Lo respond sysLemaLlcally Lo an unplanned
dlsasLer or Lrauma. lL ls a plan made for an unexpecLed ouLcome from Lhe orlglnal plan.

1hls conLlngency plan speclfled for our company wlll be focused on Lhe prevenLlon of
crlLlcal daLa loss. 1hls daLa loss could occur due Lo server crashlng, power fallure, or any
unplanned lncldenL LhaL could occur and could LhreaLen crlLlcal company daLa. 1he
sysLemaLlc process/processes and procedures have Lo be followed sLrlcLly by all of Lhe
managemenL and Lhe employees, whenever Lhe unexpecLed dlsasLer ls recognlzed.

1he |an
CrlLlcal daLa ls regularly backed up Lo SecurluaLa/unlLrends. 1hls ls a daLa backup servlce
LhaL fully backs up your daLa ln case of a dlsasLer. AlLhough on dally basls our developers
and employees wlll always backup Lhe exLremely crlLlcal daLa Lhey need. Pard dlsks
should be secured wlLh our quallfled personnel and puL lnLo sLorage.

lurLhermore, flles LhaL are exLremely crlLlcal Lo an exLenL LhaL lf Lhey were losL Lhe
company's exlsLence ls LhreaLened, such as cusLomer lnformaLlon, vendor lnformaLlon,
conLracLs and flnanclal documenLs, should be sLored ln an approprlaLe locaLlon as hard
coples. ln Lhe case of a dlsasLer all flles should be removed from Lhe premlses and
sLored ln an offslLe secured locaLlon. CerLlfled coples musL exlsL of Lhe documenLs ln a
dlfferenL secured locaLlon and on our elecLronlc backup sysLems.







S8
9. Conc|us|on

As Lhe moblle landscape evolves, Lhe one consLanL ls Lhe wealLh of opLlons avallable Lo
Lhose who wlsh Lo dellver conLenL dlglLally. 1he rapldly growlng user bases and
compeLlLlve app markeLs for boLh Apple and Androld devlces make lL a wlse declslon Lo
develop cross-plaLform wherever posslble. WlLh Lhls speclflc appllcaLlon, lL ls made ln a
way Lo LargeL a speclflc markeL audlence. And Lhe good news ls LhaL Lhls speclflc markeL
audlence ls ln need of Lhe appllcaLlon.

SubsequenLly, based on Lhe research and analysls gaLhered ln Lhls Lhesls, lL ls vlewed
LhaL lf everyLhlng goes accordlng Lo plan, Lhe launch of SporLello ls golng Lo be
successful. 1he exLernal facLors affecLlng Lhe prosperlLy of Lhe appllcaLlon are noL LhaL
sLrong, Lhe flnanclal plan gave good resulLs and all Lhe oLher analysls gave good resulLs
as well.

lL ls always rlsky enLerlng a markeL and Lrylng Lo sell Lhe producL, lL ls someLlmes dlfflculL
Lo anLlclpaLe whaL mlghL happen. 8uL SporLello ls a needed producL, ln a way lL wlll
promoLe sporLs, allow convenlence and glve users and players whaL Lhey need.













S9
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