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Software help to protect the site from hackers and crackers and any case of unauthorized or illegal access can be noticed and problems solved. GR uses a special automatizaed notification service for customers which will inform users about any “unusual” transactions by email, and for more security they automatically block User account, and just after confirmation letter from customer, it should be open for use.
Financial Plan
Financial Plan is a critical for any business. The first step in running a successful business is to develop a sound business plan and strategy.
A large marketing budget would not necessary as the focus would be on offering promotions such as half price tickets during the day and/or two for the price of one deals can be offered in conjunction with various local business/newspapers reducing marketing costs substantially. As the Grand Record cinema experience is unique, and marketed as an indulgence, it is suggested that many local businesses would be willing to be involved in such promotional activities.
While actual advertising costs will be low, printing and distribution costs will still need to be considered. In Appendix (Table 1, Table 2) shows Summary for Web Site and Profit and Loss table. Grand Record`s Projected Profit & Loss shows in a first and second table a net loss in the 1st year not only due to consultancy, set up and development fees in the website, and also promotional Company expenses and advertising cost. According to this Financial Plan, Grand Record has built strong, stable income and will be the most successful company in Cinema industry.
Conclusion
The cinema industry as a whole is facing challenges from many sides. The larger cinemas are better placed to meet the challenges of a quickly changing marketplace. Unfortunately, the losers in this consolidation of the marketplace and the emerging challenges to the cinema have been the small, family run cinemas.
Taking a broader view of the market in which cinemas compete, the market would be the entertainment market generally. People have a limited amount of disposable income and a limited amount of time which can be spent on entertainment. As such, cinemas are also competing with bars, sporting events, home cinemas, travel and restaurants. It is submitted that Grand Record cinemas would be a strong competitor in the general entertainment market at a niche level.
The intention would be to choose high headline price points but at the same time offer promotional offers which would ensure that most customers never pay the full rate. The media and promotion strategy would focus on teaming up with local businesses and newspapers to offer special promotional packages (for example, the local florist could offer a two for one deal with each bunch of roses sold)
As noted above, it is the prospective owners' view that cinemas can no longer focus on the narrow definition of the market. Some guidance can be taken from the multiplexes which offer patrons an experience. Often these cinemas are attached to shopping centers and as such going to the cinema is simply part of a person’s shopping day. Multiplexes, like the shopping centers to which they are appended, rely on the principle that if something is large and loud, no one will dare to think that it is anything but the best and it must be said that they do this well. Teenagers are particularly impressed by this logic.
Total of words: 2292
References
http://www.rbs2.com/ccrime. htm [Accessed 10 December 2009]
http://www.firewallguide.com/overview. htm [Accessed 10 December 2009]
http://www.buzzle.com/articles/types-of-computer-crimes.html [Accessed 8 December 2009]
http://fuyichin. blogspot.com/2006/10/gsc-e-payment.html [Accessed 8 December 2009]
http://ezinearticles.com/? Buying-Movie-Tickets-Online&id=2793207 [Accessed 8 December 2009]
Books:
Feature Films on a Low Budget. John Randall. Focal Press, 1991
Film Finance and Distribution - A Dictionary of Terms. John W. Cones. Silman-James Press, 1992.
Friedlob, G. T. & Plewa, F. J. 1996, Understanding Balance Sheets, John Wiley & Sons, New York
Wilinsky, B. 2001, Sure Seaters: The Emergence of Art House Cinema, University of Minnesota Press, Minneapolis
Jenster, P. V., Hayes, H. M. & Smith, D. E. 2005, Managing Business Marketing & Sales: An International Perspective, Copenhagen Business School Press, Denmark
Entertainment and Media, The Encyclopaedia of Forms and Precedents (1998), 5th ed., vol.15 (1), Butterworths, London
Janice Reynolds 2000, The Complete E-Commerce Book, Group West Canada
Charles Trepper 2000, E-Commerce Strategies, Redmond, Washington
Jeffrey F. Rayport and Bernard J. Jarowski Introduction to E-Commerce Second Edition 2003 McGraw Hill/Irwin Appendix.
Table 1
| GRAND RECORD SUMMARY FOR AN E-COMMERCE SITE | ||||
| Budget Description | Per Year Cost | Total | Percentage (%) | |
| PHASE I: $50,000 BUDGET | ||||
| (A) Consultancy, set-up and development fees: | ||||
| Consultancy, creative design, development fee, including | ||||
| project review (industry estimate of 15-20% of $50,000) | 9,000.00 | |||
| 1. Web hosting fees (up to 50 products, static web pages) | 3,800.00 | |||
| 2a. First year on-line fee | 3, 200.00 | |||
| 2b. Site maintenance (static web pages) | 3,000.00 | 19,000.00 | 12% | |
| (B) Advertising and Promotion: | ||||
| Printing & stationery BFD logo and URL address | 700.00 | |||
| 3. Search engine ("Gold subscription includes up to 200 search engines and directories using keywords | 100.00 | |||
| And keyword phrases. | ||||
| 4. Radio advertisement | 49,000.00 | |||
| Launch party discounts, giveaways, contest prizes | 3,000.00 | 52,800.00 | 69% | |
| 5. Banner advertisement (3 months) | 9,000.00 | 19% | ||
| TOTAL | 80,800.00 | |||
| PHASE II: ADDITIONAL BUDGET OF $30,000 | ||||
| 2c. Site maintenance (dynamic web pages) | 7,500.00 | 15% | ||
| 6. SSL-enabled web hosting fee | 2,000.00 | 10% | ||
| 7. Customer Service Representative | 30,000.00 | 67% | ||
| SUB-TOTAL | 39,500.00 | |||
| TOTAL FOR PHASE I & PHASE II | 120,300.00 | |||
Table 2. Profit And Loss
| PARTICULARS | YEAR 1 (RM) | YEAR 2 (RM) | YEAR 3 (RM) | |
| SALES: | ||||
| General Operation | 540,000 | 648,000 | 666,000 | |
| Service Catering | 300,000 | 364,000 | 388,000 | |
| Total revenue | 840,000 | 1,012,000 | 1,054,000 | |
| Less: Cost of Ticket Sold | (252,000) | (303,600) | (316, 200) | |
| GROSS PROFIT | 588,000 | 708,400 | 737,800 | |
| Less: Expenses | ||||
| Consultancy, set up & development fee (Note 1) | 9,000 | 0 | 0 | |
| Salaries expenses | 300,000 | 330,000 | 363,000 | |
| Rent expenses | 182,000 | 182,000 | 182,000 | |
| Advertising & promotion expenses (Note 2) | 68,000 | 68,000 | 55,000 | |
| General expenses | 40,000 | 45,000 | 47,000 | |
| Net Profit / (Loss) | (11,000.00) | 83,400 | 90,800 | |
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