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FULL FEASIBILITY ANALYSIS

PART 1: PRODUCT/SERVICES FEASIBILITY
INTRODUCTION A. PROPOSED BUSINESS SquareStudio B. Founder SITI KHATIJAH BINTI HAMID AISYAH SYAZWANI BINTI ARIFF ZAINOL MOHAMAD YAHYA FEKRI BIN ALADIN NADIA BINTI LOKMAN MOHD AZRI BIN MAT RAFFEI

C. Summary of the business Augmented reality (AR) is cutting-edge technology that allows for a digitally enhanced view of the real world, connecting you with more meaningful content in your everyday life. With the camera and sensors in a smartphone or tablet, AR adds layers of digital information videos, photos, sounds directly on top of items in the world around us. We at Square Studio provide reliable services based on Augmented Reality (AR) to bring you another perspective of futuristic technology. Services including AR games for mobile, consultancies, AR interactive book and interactive AR applications. Concept Statement Summary Things they like Only a few company in Malaysia provide these kind of services. Suggestion Is it feasible? More specific to a product Feasible but need more company should focus on exposure to the community. development of one type of production such as game development only. Squarestudio| FEASIBILITY ANALYSIS

Developing technology in Malaysia We can interact with things that are in real world not exist but in virtual world, they exist. New things, good. She like the consultancy services, at least when a new company need advices, there are someone whom will advise and suggest to them. Its good went it comes to consultation.

Hire people with many Feasible but need to have experience and creative and experienced man power in know much about AR. the company. Use AR as a promotion alternatives. Unsure, know little only about Feasible since Malaysia is a bit AR. slow in technology. Maybe can make class or seminar for people who want to know more about AR Open a class for people who It its feasible for the future. want to learn, and create next generation who love AR and eager to explore more on AR application.

Conclusion: A. Product/service desirability From the interview result, most of the candidates are interested with our services. However when we look at questionnaire result, some of them are interested and some of them are not. This might be because lack of awareness towards augmented reality technology and the goods about it.

B. Product/service demand From the interview result, they like our product and found that our services is good for future enhancement. However, when we look at questionnaire result, most of the candidates answered with might or might not buy. This might be because they didn t know what AR is and has less knowledge about AR. C. Product/service feasibility (circle the correct response) Unsure. D. Suggestions for improving product/service feasibility. - Advertise the services. Educate the community about the technology and its goods

Squarestudio| FEASIBILITY ANALYSIS

PART 2: INDUSTRY/MARKET FEASIBILITY

Part 2 will addressed an issues regarding industry attractiveness, target market attractiveness and timeliness of entry into the target market. Assessment was conducted for each categories by using assessment tools provided by Pearson Education, Inc. For industry attractiveness, assessment was based on the following guidelines. To the extent possible, assess the industry at the five-digit NAICS code level your potential business will be entering. Use a broader industry category (less NCICS digits) if appropriate (http://www.census.gov/epcd/www/naicstab.htm). Assess the attractiveness of the industry the potential business plans to enter on each of the following dimensions. For target market attractiveness, assessment was based on the following guidelines. Identify the portion or specific market within your broader industry that you plan to target. Assess the attractiveness of the target market on each of the following dimensions.

For market timeliness, assessment was based on the following guidelines. Determine the extent to which the window of opportunity for the proposed business is open or closed based on the following criteria. Determine the timeliness of entering a specific target market based on other criteria

Conclusion A. Industry attractiveness Number of competitors: Few Age of industry: Young Growth rate of industry: Strong growth Average net income for firms in the industry: High Degree of industry concentration: Neither concentrated nor fragmented Stage of industry life cycle: Growth phase Importance of industrys products and/or services to customers: Would like to have. Extent to which business and environmental trends are moving in favor of the industry: Medium Number of exciting new product and services emerging from the industry : High Long-term prospects: Neutral Squarestudio| FEASIBILITY ANALYSIS

We can conclude that we has moderate potential in this industry. B. Target market attractiveness Number of competitors in target market: Few Growth rate of firms in the target market: Slow growth Average net income for firms in the target market: Medium Methods for generating revenue in the industry: Somewhat clear Ability to create barriers to entry for potential competitors: Can create Degree to which customers feel satisfied by the current offerings in the target market: neither satisfied or dissatisfied Potential to employ low cost guerrilla and/or buzz marketing techniques to promote the firms product or services: Moderate Excitement surrounding new product/service offerings in the target market: High

For target market attractiveness, we can conclude that we has moderate potential to market our product. C. Market timeliness Buying mood of customers: Customers are in an aggressive buying mood Momentum of the market: Rapidly gaining momentum Need for a new firm in the market with your offerings or geographic location: High Extent to which business and environmental trends are moving in favor of the target market: Medium Recent or planned entrance of large firms into the market: Rumors that large firms may be entering the market From the market timeless studies, we can conclude that we has high potential to enter our target market. D. Industry/market feasibility (circle the correct response): Feasible E. Suggestions for improving industry/market feasibility. 1) Actively promote on advertisements and in social networking sites. 2) Partnership with government agencies as well as private parties.

Squarestudio| FEASIBILITY ANALYSIS

PART 3: Organizational Feasibility

Part 3 will addressed an issues regarding management prowess and resource sufficiency. Assessment was conducted for each categories by using assessment tools provided by Pearson Education, Inc. Conclusion A. Management prowess Passion for the business idea: High Relevant industry experience: Moderate Prior entrepreneurial experience: Moderate Depth of professional and social networks: Strong Creativity among management team members: High Experience and expertise in cash flow management: None College graduate: Graduated or are currently in college

For management prowess, we can conclude that we has high potential since we are passion about our business idea. B. Resource sufficiency Sufficient since we get most of the ratings by available. C. Organizational feasibility: Feasible D. Suggestions for improving organizational feasibility 1. Consultancies from experienced firm in related industry.

Squarestudio| FEASIBILITY ANALYSIS

Part 4: Financial Feasibility

Part 4 will addressed an issues regarding total startup cash needed, financial performance of similar businesses, and overall financial attractiveness of the proposed venture. Assessment was conducted for each categories by using assessment tools provided by Pearson Education, Inc. Conclusions A. Total startup cash needed Property Furniture and fixtures Computer equipment Other equipment (eg, printer, leapmotion, Kinect, television) Vehicles Legal, accounting, and professional services Advertising and promotions (eg, social media, online website, printing) Deposits for utilities Licenses and permits Prepaid insurance Lease payments Salary and wages (eg, staff and executive officer in 12 months) Payroll taxes Travel Signs Tools and supplies Starting inventory Cash (working capital) Other expense 1 (eg, emergency) TOTAL STARTUP CASH NEEDED Total startup cash needed is approximately RM 2 038 000.00 50 000 50 000 30 000 20 000

100 000 20 000 50 000 100 000 10 000 258 000 100 000 100 000 100 000 50 000 500 000 500 000 2 038 000

Squarestudio| FEASIBILITY ANALYSIS

B. Financial performance of similar businesses Estimation for Proposed Ventures Annual Sales Year 1 1. Salary a) Staff b) Executive Officer 2. Profit per month 3. Bills (e.g., water, electric) In one year Annual Sales (Year 1) 21500 + 5000 + 3000 = 29500 (Below Average compare to similar firms) Year 2 1. Salary a) Staff 1800 per month * 5 staff = 9000 TOTAL: 21 500 2. Profit per month 3. Bills (e.g., water, electric) In one year Annual Sales (Year 1) 21500 + 10000 + 3000 = 34500 (Below Average compare to similar firms) Conclusion: Other similar companies having good financial as they manage to maintain in this field. Estimation of Proposed Ventures Net Income Year 1 Estimation profit per month In 12 months 5000 5000 * 12 = 60 000 10000 3000 b) Executive Officer 2500 per month * 5 staff = 12 500 1800 per month * 5 staff = 9000 2500 per month * 5 staff = 12 500 TOTAL: 21 500 5000 3000

Net income estimation is about 60 000 in a year. Year 2 Estimation profit per month In 12 months 10000 10000 * 12 = 120 000

Net income estimation is about 120 000 in a year. Squarestudio| FEASIBILITY ANALYSIS

C. Financial feasibility (circle the correct response): Feasible D. Suggestions for improving financial feasibility 1. Consider the investor or partnership/alliance from other similar companies to generate funding. 2. Make sure finance growth from years to years. 3. Search and treat the client or customer to stay and repeat business with this company. Overall Feasibility: Summary and conclusion. Overall Feasibility of the Business Idea Based on Each Part Feasible Feasible Suggestions for Improving the Feasibility

Product/Market Feasibility Industry/Market Feasibility

Organizational Feasibility Financial Feasibility

Feasible Feasible

1) Actively promote on advertisements and in social networking sites. 2) Partnership with government agencies as well as private parties. 1. Consultancies from experienced firm in related industry. 1. Consider the investor or partnership/alliance from other similar companies to generate funding. 2. Make sure finance growth from years to years. 3. Search and treat the client or customer to stay and repeat business with this company.

Overall Assessment

Feasible

Squarestudio| FEASIBILITY ANALYSIS