1. Executive Summary.

2. Review of financial and market performance during the past year..4-5

3. Assessment of current situation and the market.6-9

a. Customers.6

b. Competition...7

c. Companys strengths and weaknesses7-8

d. Major problems/opportunities to be dealt with in next two years..8-9

4. Strategy for the next two years in business.10-12

a. Marketing Strategy...10

b. Sales Channel Strategy...10-11

c. Human Resource Strategy..11

d. Manufacturing Strategy...12

e. Financial Strategy.12

5. Financial request...13

a. Amount of money being sought

b. Projected ROI at end of year three

c. Desired stock price and share of company being offered

6. Pro forma cash flow, balance sheet and income statement...13-17

7. Tactical plan.17-18

1.Executive Summary
 Majjic Enterprises is a computer technology firm operating with four Executive

VPs all specializing in and primary responsibilities with additional secondary

responsibilities. Anthony Haapala specializes in Marketing but also focuses on Business

Analytics. Jimmy Rubino focuses on Manufacturing and Business Analytics. Jeremy

Peters is in charge of Sales Management and Human Resources. And Michael

Swierczewski focuses on Accounting and Finance and also Sales Management.

During our first year of operations, Majjic Enterprises, developed and launched

two brands of computers into two target markets in addition to opening a web sales

center based in the Chicago market. We built a factory in Sao Paulo, Brazil-South

America with a capacity of 25 computers per day in order to meet our manufacturing

needs.

The first sales office opened was our Toronto office located in the NORAM

region. The brand launched was the Workhorse model which based on initial Market

Research which was purchased by our company. During the fourth quarter Majjic

Enterprises sold 85 of our workhorse model Alpha computers. This accounted for 17%

of the Workhorse market share and also 9% overall market share based on demand in

all markets.

During Quarter 4, a second sales office, was opened in Moscow, Russia-

EUROPE market. This move was made as demand in this region for an Innovator

model of computer was high in this mid-high range market. Our market research also

supported this move in the EUROPE region.

A web sales office was also opened in Chicago in Q4 in response to competition

and consumers desire for tech support and efficiency in purchasing our computers.
 During the first four quarters of operations Majjic Enterprises issued 40,000

shares of stock totaling $4,000,000 at $100 per share. This common stock offering was

used to open our web and sales office, hire salespeople/ support staff, build a factory,

and develop/manufacture our products.

During Q4 our Alpha brand sold 245, and Omega brand sold 26. This was for a

gross margin of $362,580. Our web sales accounted for 59 of the Alpha computers sold

for a gross margin of $75,983. Majjic Enterprises maintained our 9% market share

across all markets.

Sales forecasts were overestimated during Quarter 4 and as a result we had to

take an emergency loan of $815,766. We plan to pay off the loan by increasing the

demand for our products. Increased demand will be achieved by retooling our products

to meet the exact specifications our customers demand. In addition we will continue to

invest in our future in research and development and also reducing changeover costs.

And focus our company around our sales staff and factory workers who are the most

productive in the industry in their respective trades.

At the end of Quarters 2 and 3, any additional money, was deposited into a 3

month Certificate of Deposit account earning 1.5% interest.

2. Review of financial and market performance during

the past year

Financial Performance:

In Q1 and Q2 we were beginning to start up our company in preparation for the

test market in Q3 and Q4, because of this there were only expenses and no revenue

incurred during those two quarters. We used this time to buy marketing research along

with opening a factory and establishing a sales center in Toronto. Those areas are

where the expenses were incurred for the first two periods. We still had ending cash

balances of $912,000 in Q1 and $812,731 in Q2 due to the $1,000,000 of investments

in each of the quarters.

At an overhead view, our operating profit has decreased significantly throughout

the year. A big factor in this is that AMMT (our lead competitor) has managed to siphon

away demand due to them having a superior product to ours. This cause our gross

profit to not be as large as we have anticipated, especially in Q4 which was a big

spending quarter for us being that we wanted to become more established into Q5 than

we actually came out to be causing us to be place in a rut followed by an emergency

loan from a loan shark.

Q4 hit us bad because we were investing our money into the product and

marketing research along with other activities like improving changeover. We can see in

Q2 and Q3 that we ended up being too conservative causing us not to get our foot in

the door and we decided that in Q4 we wanted to take the initiative which brought our

retained earnings all the way up from -$1,734,249 in Q3 to -$3,384,281 in Q4 which is

not where we projected ourselves to be at this point in time.

 Looking at financial ratios a big thing thus far is our inventory turnover because it

is incredibly low at 1.59 due to how much inventory we still have on hand at the

quarter's end.

Market Performance:

In both quarters our total market share was 9% of the market. Our main segment

we focus on is workhorse which was only 17% in Q3 but fell to 12% in Q4 due to AMMT

siphoning more customers away from us in Chicago and Toronto. Another segment we

focus on is the innovator market which also decreased from Q3 to Q4 from 10% to 7%.

The biggest shocker came from costcutter market which doubled from 7% to 15% even

though thats a market that we dont even focus on. The two markets we havent sold

anything in are mercedes and traveler which arent big priorities for us, although we do

want to get into the mercedes market in the future.

3. Assessment of current situation and the market

Customers:
 One unanticipated issue Majjic Enterprises faced as a company was how to

increase demand for our computers. This is partially due to very strong competition in

our target markets. In creating our products we focused on the market research

suggesting the wants and needs of our target market. Creating our computer to these

specifications we overestimated the number of computers that we were going to sell in

the Toronto-NORAM market. Currently our brand appears to to be less liked than other

competitors resulting in a lower demand even though we have better advertisement and

reliability judgement of our product.

We look to more accurately judge the wants and needs of our target consumer

markets. In more closely aligning our products with their desires we feel that we will

create an increase in demand for our computer brands. Majjic Enterprises also strives to

maintain and perpetuate

An aspect of our business that is currently not well managed is our

manufacturing and production assets. Once we are able to increase and more

accurately judge the demand for our products we will be able to more accurately staff

and prepare our manufacturing plant for our needs. This will eliminate excess inventory

and also the costs of laying workers off.

Competition:

Majjic Enterprises faced very stiff competition especially from AMMT in the

Toronto market. We were only able to capture 17% of the market share. Compared to
AMMT who sold 171 Workhorse computers for approximately 40% of the market share.

Competition also included OneTech and Tech Bridge who both sold about 22% of the

overall Workhorse computer market share with sales in the Los Angeles and Paris

markets.

Companys strengths and weaknesses:

Strength:

Some of our company's strengths are Investment in future, human resource

management, and advertising. Our investment in the future is good because we will

have lower turnover times, we have a lot of R&D and marketing research. Our human

resources are strong because we have the most productive sales people and this is

because we compensate them very well. After investing into the inspection of our

product we eliminated some production errors and were able to increase our reliability

judgement which we see as strength in our brand identity as a reliable product.

Weakness:
Our company's weaknesses are manufactory productivity, total performance, financial

performance, market performance, market effectiveness, wealth, Asset Management,

and Financial Risk. Our manufacturing production struggles because we do not have

any sales so we end up with a lot of leftover inventory. Our financial performance is a

weakness because we have no sales and we have a lot of expenses and investments.

Our market performance lacks because our product is not meeting the needs of our

target segment, this is also why our market effectiveness is lacking. Asset management

is poor because our asset turnover is terrible and this links back to our sales and

product. Our financial risk is bad because we have no sales and we are in debt.

At this point Majjic is a highly leveraged company, including an emergency loan

during Q4. The reason this was necessary was an overestimation in the demand for our

products. We failed to calculate into the equation that the Omega was entering its first

quarter for sale. Demand was low and product recognition was low which lead to high

ending inventory at the end of the quarter.

Major problems/opportunities to be dealt with in next two years:

 One problem facing Majjic Enterprises is that we have not been able to have our

brand recommended by the Independent Customer Union. This has devalued our

perceived demand for our Alpha product.

Tough competition from AMMT in our flagship Toronto-NORAM market has led to

lagging sales of our Alpha product. In addition we must focus on increasing our market

share since we have had problems with expanding our market share in the previous

quarters.

One opportunity we feel is that we are the first of all of our competitors to open

up a sales office in the Moscow-EUROPE market. We feel that this venture may be very

lucrative if our product is tailored specifically to the needs of our customer in this target

market according to our market research.

Majjic Enterprises has spent a significant portion of our finances on the future

growth of our company. Decreasing the amount of change over time will in the future

lead to higher revenues due to lower turnaround costs. We have also invested money to

expand the production capacity of our Sao Paulo located factory.

4. Strategy for the next two years in business

Marketing Strategy:

Our marketing for the next two years is to have the brand and ads most liked by

our customers. We want to have the most brand likeability and awareness out of all of

the groups. We will do this by using our research, R&D, and market research to make

decisions on our future marketing strategy. We are going to redesign our current brands

to match our customers needs and wants. Then we are going to design new computers
to hit the mercedes market with the best product available in that market. Then we will

use advertising to promote our products in the cities we are selling our products. We will

use the correct media outlets to best target our audience, giving us the best format to

get market share.

Sales Channel Strategy:

Majjic Enterprises opened our first sales office in Toronto-NORAM targeting the

Workhorse segment of consumers. Facing stiff competition in Toronto during our first

quarter open, we decided, to pursue opening another sales office in Moscow-EUROPE.

In addition we have opened up a web center in Chicago.

Our plan moving forward is that we are going to continue to sell in Toronto and

Moscow, and the websales. We are also planning on opening up another sales center in

Paris and the focus of their sales will be the mercedes brand. We are choosing Paris for

the location because we are sticking to our strategy of going into the medium sized

markets. Then when we get to our traveler brand we will make that a secondary focus

for our sales office in Paris because again it is a middle of the pack city for this brand of

computers.

Human Resource Strategy:

One of the highlights of Majjic Enterprises has been our workforce productivity.

Our salespeople are the most productive, meaning, that they are the most satisfied and

motivated. Our factory workers are also the most productive in their respective position.

We value our employees and offer them the industry's most comprehensive packages in

terms of healthcare, vacation, and retirement pension benefits.

 The only way that we are going to be able to establish our brand in our target

markets is to have the correct employees in our organization. Motivated and filled with

good intentions, our employees, will be the champions that make Majjic Enterprises a

global force in the computer industry.

Focusing on the training of our employees will boost their productivity and

increase the overall sales of our product lines. Through market research we have

learned that our Workhorse target market is concerned about having customer service

available to them.

Manufacturing Strategy:

Over the next two years our marketing strategy is to improve worker productivity

to the point to where the production line is working at max capacity and most efficiently

as possible to reduce overhead costs. In addition with taking worker productivity,

advertising and demand into account we need better forecasting of projected demand

and operating capacity once we have a strong product established. As we hopefully

continue to increase our market share in the future we will increase our projected

demand to ensure that we never encounter stock outs. Over the next eight quarters we

hope to leave as little ending inventory as possible at the end of each quarter to reduce

the amount of unnecessary costs.

Financial Strategy:

Our company plans to get a higher gross margin as our new products become

established. Also, we wont be spending as much money on advertising and improving

our changeover. Also we invested in assets now through increasing our plant capacity

and establishing to sales centers and a web center. Once we get money from the
venture capitalist we plan to pay off our emergency loan initially, followed by created a

product that can surpass that of AMMT and siphon away the demand that they took

from us. Also in the future we wish to branch out in Europe and start to hit the mercedes

market. The money from the venture capitalist will be used to find the best technology

available for that of the mercedes market so we exploit it further than any company has

thus far since it currently is an untapped market.

5. Financial request
Majjic Enterprises is requesting $5 million from the venture capitalist at $100 per

share and 55% ownership of the company. We see this as a reasonable percentage of

ownership of the company because the company will have $9.8 million invested into it

and the four investors who are executives of Majjic Enterprises being Anthony Haapala,

Jimmy Rubino, Jeremy Peters, and Michael Swierczewski will keep the rest of the

owner privileges being that they will be hands on with the company and will want to

improve the value based on personal interest and pure belief in the company. We

expect return on investment by the end of year three to be at least $3,000,000 with

prospective growth into the future.

6. Pro forma cash flow, balance sheet and income statement (Quarters 1 to 12)
Since Q4 was such a big spending quarter we dont need to do as much spending in

Q5. We opened up the necessary sales centers we had in Q3 along with a webcenter.

We also spend a lot on seeing where the quality of our product lies. We also spent

$200,00 in Q3 and $300,000 in Q4 on R&D of improving changeover which will allow us

to not have to spend as much in future quarters. Once we establish our new products

we expect our gross profit to increase immensely over the next few quarters which will

eventually bring our operating profits closer and closer to becoming positive and then

increasing from then on.

 A big positive from our cash flow is that our revenues are increasing and we do

expect those to continually increase as our revisions of Alpha and Omega hit the market

and become known and accepted throughout our markets. Another thing is that we will

have the $5,000,000 from the venture capitalist to invest in future sales markets and

exploit our products in those new markets.

As we can see in investing activities we have put money into making our factory larger

which we wont have to do again for at least two quarters. We hope to see an increase

in common stock of $5,000,000 after the venture capitalist comes in which will be able

to be used to pay off our emergency loan as soon as possible and continue into making

our products better for the future.

 As seen throughout the quarters our cash does continually decrease over the

first four quarters but that was due to the fact that we were investing in land and building

that we wont have to in the future as much, which will allow us to have more cash on

hand in the future.

7. Tactical plan (Quarters 1 to 12)

Majjic Enterprises has focused their priorities on selling the Workhorse as their

primary product. Our secondary focus is on the Innovator consumer target market,

followed by Mercedes as the third target market. We placed the Traveler as the fourth

priority to our company and have placed no listing of priority to selling to the Costcutter

target market.
 We will consistently target markets that through market research we have

determined to be medium sized and competitive segments. Our geographical region

that we will be focusing on is in the middle of the cost and size continuum.

During Q5 we will be introducing a new modified brand based on our original

Omega product. The improved product will have new features that are most specifically

tailored to the wants and needs of our target Innovator market.

We will continue to strive to be the market share technology leader, while also

providing the most reliable product on the market. This will be accomplished through

increased spending more in research and development, changeover rates, and market

research.

While maintaining the most productive sales force and factory employees, we will

continue to offer uncompromised support to our customers using our products. We feel

that the best way to ensure that our customers remain satisfied is to offer a superior

level of customer support to them.