Our Business

Form a new company and form a joint venture with an already existing and well$-$established

company $($Pearl Bay$)$ and commit into developing the entertainment and attract more customer

portfolio with a combined investment, skills and expertise. The idea is to run the business jointly with

Pearl Bay, which will help both parties $($since we are helping them diversify into cafes and help them

expand in Colombo, right next to universities in Kollupitiya and easily attract the target market $$ the

youth and students$),$ and open an indoor go$-$karting combined with a caf$$ targeting the youth $($mainly

university students$).$ We also have an advantage since we are planning on collaborating with nearby

universities and giving special offers if you are a student enrolled in those universities. This way, it is a

win$-$win for the universities, PearlBay and ourselves. Hence, it will allow us to cut through competition

with a less effort. This venture will be financed by various methods to get the best out of it; the joint

venture with PearlBay will allow us to get some of their finances involved in the business $($especially for

the indoor go$-$karting$),$ the pile of money we three bring into the business and rest can be covered by a

loan. Mostly the money we three pile in can be contributed mainly for the development of the caf$$ and

the balance $($after PearlBay invest$)$ for the karting to be financed by the loan. And since joining together

will make this a branch of pearlbay, we can cut the costs in the beginning by sharing certain things like

go karts. Hence, even in terms of marketing, it is taken cared of to a certain extent $($PearlBay will help

since we are joint, the collaborations will help in and word of mouth will spread$).$ Hence, create a short$-$

term demand hike. Rest of the business relies on sales and marketing like promotions, offers,

collaborations, etc. Moreover, this indoor go$-$kart concept is new to whole of Asia $($for the time being$),$

we can get a lot of attention and sometimes even attract foreigners.

Additionally, the caf$$ and indoor go$-$karting is placed in the same location but split by glass, so

the people in the caf$$ can see the indoor go$-$karting and vice versa. And depending on the amount of

karts we have, we can begin the venture either with running solely on bookings for the indoor go$-$

karting, giving discounts for bookings, or first come first serve basis. Later, once everything is settled,

we can expand by increasing our product range according to the research and development $$ for

example in Sri Lanka, there is a market for Pool tables where even businessman would come to play Pool

or look into facilities which nearby universities are lacking $($like access to lounge facilities or cafe$)$ and

add them accordingly.

Total Fixed cost$-620,000,000$ LKR

Total variable costs $10,000,000$ LKR

Total cost$=$ Fixed cost $+$ variable cost

$=630,000,000$ LKR

Initial investment dividing $(60\%$ pearl bay and remaining $40\%$ dividing in between $3$ people$)$

Pearl bay $-378,000,000$ LKR $(60\%)$

$3$ people $-252,000,000$ LKR $(40\%)$

Question

$1.$ Conclusion on to this business and reccomandations for future from the overall anaysis from SWOT, PESTEL, PORTER'S FIVE FORCE, TRIPAL BOTTOM LINE, VRIO