Proposal to Acquire Funds For BeautyKat.com Winston Leong ETM 5121 July 14, 2004

Introduction A online retail beauty care website Started business in April 2004 Mission is to provide customers with hard-to-find products from outside of America Also provide product reviews Intended website goal is to be a customer focus website that allows customer interactions through discussions, consultations and customer demand input

Problem Statement BeautyKat is at the startup phase of its operation A lot of the work being done now is unplanned and without clear objectives Internal operations are poorly managed and inefficient Key reason for this is a lack of funding to purchase software, hire contractors and outsourcing of operations BeautyKat is now operating with one full-time and one part-time staff

Measures of the Problem Website content and Editorial Design – Intended goals of the website is not accomplished. Example, interactive sections of the website is not set up yet. Technology – Web hosting and merchant solutions are provided by third party company. Shopping cart ‘checkout’ process is standardized and cannot be changed. As a result, promotional tools which are effectively placed in ‘checkout’ process cannot be implemented. Merchandising and Supply Chain – Unable to place big lot orders. Shipment are billed per cubic meter. Sales and Marketing – Advertising have been low budget ones. Unable to hold PR events with newspaper and magazine publishers. Customer Relation Management – No tools available for online shoppers and existing customers. Finance, Accounting and Enterprise Processes – Back end operations are not integrated with front end operations. These are currently being done manually.

Project Objectives Final objective is to prepare BeautyKat on the path towards acquiring funds to grow the business Final report (ETM 5131) is a comprehensive business plan detailing all aspects of BeautyKat operation, visions and market objectives and market studies and forecast. Several sub-objectives are to be met before presentation to investors –Prepare a comprehensive business plan –Have an updated cash flow statement –Complete implementation of website –Plan for future launch of products –Prepare a clear strategy on entry and exit of merchandise –Draw out suppliers terms and conditions –Determine a set of metric to measure the business –Determine a clear pricing structure for its merchandise

Specific Deliveries Present a defendable business plan Ensure smooth and stable operation of business Have a clear strategy in terms of executive of different functions

Alternatives to Consider Completing all sub-objectives before presenting business plan –Not likely, since current funding is an issue. –Also, may not have the expertise and experience to achieve smooth operations in the first place Completing part of the sub-objectives before presenting business plan –The most likely path to take, since it will allow time for further iteration of business operations Presenting business plan with BeautyKat at its current state –Not a consideration at all

Approach and Criteria for Evaluating Alternatives Prioritization of sub-objectives –Must be accomplished –Must be accomplished but need not be complete –Can wait Approach will be multiple processes with each process using some or all of the steps listed below, –Define –Analyze (Cause and Effect Studies) –Design and Document –Implementation –Measure –Control

Project Plan Start of project is August 2004 Presentation of business plan is December 2004

Planned use of ETM Materials IEM 5113 IEM 5823 IEM 5763 ACCT 5103 MKTG 5113