**** Comprehensive Site Business Plan

Executive Summary HMR, Inc. is in process of being formed as a Corporation in ****. The Objectives: –to generate profit –to grow at a challenging and manageable rate –to be a good citizen and to help the country The Mission: to develop and maintain a portal called ICS to help **** business gain, and optimally benefit from online technology.

Executive Summary- Continued The key to success: - marketing and networking - responsiveness to customer needs - high quality, and generating repeat customers Sources of Income: The initial primary services offered will be charged based on monthly fees and subscriptions.

Executive Summary- Continued The Market: - the market for this business is wide open in **** - an **** Web Portal that offers a broad array of resources and services, such as , forums, search engines, news, and on-line shopping and links to other sites is missing. - **** is among the few countries in the world that lacks such a domestic Web "supersite.”

Executive Summary- Continued Competition: Several firms currently offer the similar but limited services to those planned by HMR, Inc. (1) (2) (3) None of these firms are seen as a significant barrier to the success of HMR, Inc. because, as stated previously, the overall market comprises nearly every service business in the country. In fact, some of these organizations may be potential alliance partners to HMR, Inc.

Executive Summary- Continued Rapid Growth:

Services Provided e-Learning Online Classes Virtual Classes Cyberschool e-Business Credit Card Shopping Debit Card Shopping e-Traveling Web Mail Anti Spam System Anti Virus System News Local/Regional/National Stock Market

Services Provided (Continued) Advertisement Banners & buttons Text links & search results Multi-format sponsorships Context-Sensitive Ads Web Shopping Shopping Cart Secure Server Web Hosting Content Management Personal Templates

Services Provided (Continued) Domain Hosting Web Log Chat & Forums ICP Messenger Chat Rooms Voice Chat & Video Chat File transferring

Operational Phases ICS will be designed and implemented in five phases in roughly thirty total estimated cost of $2,382,000. Phase 1 - Preparation phase (September to December 2007) (four months) Recruitment of experts (mostly programmers) - $30,000 Securing of an office and a data center - $10,000 Purchasing of PCs for the office - $10,000 Purchasing of Bandwidth - $24,000 Purchasing of office furniture - $30,000 Total Cost: $104,000

Operational Phases Phase 2 - Design phase (January to September 2008) (nine months) Expansion of Bandwidth to 5 megabytes - $30,000 Purchasing of more PCs for the office - $10,000 Purchasing of office equipment - $5,000 Recruitment of sales force - $40,000 Office Rent - $18,000 Marketing the ICS to individuals, companies, and government agencies - $20,000 Design and testing of the ICS prototype – $30,000 Design and testing of Farsi modules (including payroll) - $610,000 – –Web log –Personal web templates –Public and custom design news –Pictures and Videos –Search Engine –News and Views –Music Messengers –Stock Marker –Weather Information –Single Users Passport ID and User name for advance users –Banners & buttons –Text links & search results Total Cost: $763,000

Operational Phases Phase 3 - Connection phase (October 2008 to March 2009) (six months) Expansion of Bandwidth to megabytes - $21,000 Connection to Fiber Optic Network - $20,000 Purchasing of hardware and software for Data Center - $45,000 Office Rent - $10,000 Configuration of Secure Data Center and installation of hardware and software - $90,000 Design and testing of Farsi modules (including payrolls) - $470,000 –e-Learning –e-Business –Cyberschool –Content Management Total Cost: $656,000

Operational Phases Phase 4 - Implementation phase (April to September 2009) (six months) Marketing the ICS to individuals, companies, and government agencies - $40,000 Office Rent - $10,000 Recruitment of experts and technical staff - $150,000 Design and testing of Farsi modules (including Payroll) - $174,000 –Travel –Digital Locker/ Brief Case –Messengers –Stock Marker –Weather Information Total Cost: $374,000

Operational Phases Phase 5- Testing/Improvement phase (October 2009 to March 2010) (six months) Office Rent - $10,000 Advertising and promotion – $139,000 Testing and modifications of all modules - $126,000 Design and testing of other modules as needed - $150,000 Securing collaboration with other existing Farsi portals - $60,000 Total Cost: $485,000

Operational Expenses by Phases

Client Target Individuals: , News, Web Log, Personal web templates, etc. Industries: Business-to-customer services, Business-to-business services, especially (a) those with international operations (e.g. import/export firms, travel agencies, freight forwarders) and (b) other information-intensive services (e.g. law, accounting, and consulting practices, banks, financial services, brokers), and (c) major government agencies. Size: 50 to 5,000 employees

Client Target (Continued) An estimated 100,000 businesses fit this profile. According to an industry magazine, only 30 percent of businesses with microcomputers have "online capability" (i.e. are equipped with a modern and telecommunications software). This implies a total market of 70,000 businesses (70 percent of 100,000) with no online capability, and an additional 30,000 businesses (30 percent) that have online capability. but may or may not be using it to their full advantage. It is the latter 30 percent that have the highest potential as HMR, Inc. customers.

Type of Customer

Estimated Revenue

5 Year Profit & Loss

Estimated Revenue Est. Sales Advertisement074,000130,000200,000266,000330,000 Web Hosting0110,000200,000280,000410,000495,000 Web Mail0120,000250,000360,000537,000660,000 Web Shopping030,00075,00088,000137,000165,000 e_Learning010,00050,00075,00095,000110,000 News010,00015,00040,00050,00055,000 Web Log0015,00050,00060,00065,000 Book Stores020,000 24,00028,00032,000 Auctions0010,00033,00047,00058,000 Total0374,000765,0001,150,0001,630,0001,970,000

Estimated Costs Est. Costs Payroll50,000400,000250,000150,000250,000200,000 Software Dev.0469,000362,000150,000220,000100,000 Advertising0100,000150,00080, ,000 Office Expenses50,000100,000150,000120,000100,00090,000 Supplies2,00012,00017,00022,00027,00031,000 Utilities2,00010,00015,00020,00025,00030,000 Total104,0001,091,000944,000542,000702,000551,000

Break-Even Analysis Desc Cash-in 0374,000765,0001,150,0001,630,0001,970,000 Cash-out 104,0001,091,000944,000542,000702,000551,000 Balance -104, , ,000608,000928,0001,419,000 Total Profit -104, ,000-1,000, ,000536,0001,955,000

Mission/Strategy/Ta ctics How does mission, strategies and tactics relate to decision making and distinctive competencies? StrategyTacticsMission

Strategy Strategies –Plans for achieving organizational goals Mission – The reason for existence for an organization Mission Statement – Answers the question “What business are we in?” Goals – Provide detail and scope of mission Tactics – The methods and actions taken to accomplish strategies

Planning and Decision Making Mission Goals Organizational Strategies Functional Goals Finance Strategies Marketing Strategies Operations Strategies Tactics Operating procedures

Strategy Example Rita is a high school student. She would like to have a career in business, have a good job, and earn enough income to live comfortably Mission: Live a good life Goal: Successful career, good income Strategy: Obtain a college education Tactics: Select a college and a major Operations: Register, buy books, take courses, study, graduate, get job

Examples of Strategies Low cost Specialization Flexible operations High quality Service

Strategy and Tactics Distinctive Competencies The special attributes or abilities that give an organization a competitive edge. – Price – Quality – Time – Flexibility – Service – Location

Banks, ATMsConvenienceLocation Disneyland Nordstroms Superior customer serviceService Burger King Supermarkets Variety VolumeFlexibility Express Mail, Fedex, One-hour photo, UPS Rapid delivery On-time delivery Time Sony TV Lexus, Cadillac Pepsi, Kodak, Motorola High-performance design or high quality Consistent qualityQuality U.S. first-class postage Motel-6, Red Roof Inns Low CostPrice Examples of Distinctive Competencies