TTV 2541 KIDNET

TTV2541 TECHNOPRENEUR VENTURE

KIDNET CHILDREN SOCIAL NETWORK & ONLINE LEARNING

CHOO MING HUI 1102700697 LIM SHIAU CHIN KUEH SHI SYAN GAN YOKE YIN LIM ANN KIT
LECTURE SECTION: TMB 12

FACULTY OF INFORMATION TECHNOLOGY MULTIMEDIA UNIVERSITY 25 AUGUST 2011

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Acknowledgement We would like to say special thanks to our supervisor, Mr. Cheong Soon Fatt for his direction, encourage, support and help on this project. Besides, we would like to thank you to our family members who helping us on our assignment. They give unending love and support for all of us. When we meet problem on our assignment, they willing to help us to solve our problem that we meet and kind to explain to each of us what should we do and what exactly we need to do on this assignment. Moreover, I would like to thank to my team member for they cooperated to complete this project. The whole project really brought us together to appreciate the true value of friendship and respect of each other. Besides that, this projects makes our team realized that the value of teamwork and gain lot of knowledge about this subject. Last but not least we would like to thank my friends especially those who lend us their hand and give a lot of idea and suggestion to us.

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Content

Page

1.0 2.0 3.0 4.0 5.0 6.0 7.0 8.0 9.0

Executive Summary Business Description Marketing Operations Management Financial Critical Risks Harvest Strategy Milestones

4-8 9-11 12-21 22-23 24-28 29-33 34-35 36-37 38 39 40

10.0 Bibliography 11.0 Appendix

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1.0 Executive Summary Nowadays, high technology is the mainstream topic that discuss by everyone. Our lifestyle was also deeply influenced by electronic technology product. I phone, I pad, PC and high speed broadband internet already become the demand of everyone in 2012. Under the rapid development of science & technology, the concept of human was changes. The old style education system already cannot bring effective to our children. So, we decide to establish a new type of learning methods that can easily accepted by children. KIDNET is a totally new concept for children to social and learn in the 21st century. Due to the statistic in 2011, Malaysia populations already achieve 28,728,610 people and children less than 15 year old have more that 30%. This means that is more than 8 million of children in Malaysia. They are a big potential to develop our company. KIDNET offer social network and online education service for children. We target the children between ages 3 to 15 years old and provide a safety environment for them to interaction with other children. The system will filter all unhealthy source and malicious website. Parents can use parental controls to help manages how your children use the computer. System will also send the activity report to parents email every week. To register our website service, user need to authenticate by our partnership education institutions. Strict register policy is to protect our website away from the criminal. The system will automatically separate the children in 3 groups follow their ages. 3-5 are the preschool level, 7-12 are primary education level, 13-15 are junior level. They can easily find others children that same level with them and interact with them through
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games, chat box and others learning activity. We also provide online live education for customer than subscribe our extra education package. Children can communicate with our friendly educator and also join live online tuition class.

1. Mission of our company Our company target to become the the most authoritative integrated children's services website in Malaysia that authenticate by Ministry of Education (KPM). We provide the service about the children social network that includes the effective educational material to let children learning through internet and games. We provide a new concept of studies that easily attracted children and easily accepted by them. KIDNET will become a reasonable platform for kids to do social interaction and play computer game. We hope that KIDNET can bring a new transformation in the education sector, change rigid and inefficiency way of learning that already outdated.

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Value Build a safety social network that free from unhealthy sources for children to let them share the information they like about cartoon, games, sport, and so on. Provide the learning material that let children learn new words and new language when they surfing net or playing games We will accept complains and feedback from customers through our website and try our best to make a better solution. Online live education and more add-on that valuable for customer that subscribes our monthly or yearly packages. Provide counselling service for children. High quality of instructor and educator.

2.0 Business Description The name of our company is KIDNET. KIDNET is an integrated children's services website in Malaysia that include children social network and also children learning system. Our business is mainly focus at provide children online learning service and tuition through internet to help children improve their academic performance. After doing the market research, we found that many families have personal computer, mobile phone and tablet

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that can access our online service. We will separate the children in 3 different group to develop the learning material that suitable for them.

2.1 Company Goal and Objectives Our operational goal is to help every child to spend their free time in a more benefit ways and also improve their academic performance. To archive our goal, we have to build a complete system that can attract children to enjoy their study through internet and make sure have a social platform that easily to operation. We will do our best to let children join our social network, and also let parent know how much importance to control their children online behavior. In addition, our online tutor and counselor are very friendly and also full of experience in education. Besides that, our developer also prepares all the test paper and exercises that follow Ministry of Education syllabus. Our service also included parental controls that help parent to manage how your children use the computer and surf net. Parent can set limit on the hours that children play the game and time to do exercise. All children surfing history will also send to their parent email every week. We also organize travel activities to let children contact with natural and practical. Activity area will coverage Museums, farms, botanical gardens, zoos, historic sites and also tourism area. All activity will need additional charge.
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Furthermore, we also plan to cooperate with some manufacture that doing children product and build an online store for children. Product included childrens product, stationery, books, kids costume and others. All packages subscriber can get special discount to buy our product and cheaper than market price. Our financial goal is to increase our company revenue by 30% in 3 years and expand business appropriately. The marketers need to work hard to find new education institution and cooperate with them. Our company also planned to make promotion or rebate for those families that have more than one child to reduce the burden of parent. We believe that parent will trusted or professional service and subscribe our packages.

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Marketing Research and Analysis Target Market Identified The potential of the social networking is unpredictable and it is part of factors to make our business success. Before we start up our business, first step is conducting the market analysis. Find out the market needs and provides the services to the customers. Our target market is below 12 years old children. When they start come into contact the things around them and accepted it, and even pursue new knowledge. According to the Malaysia Demographics Profile 2012, total population has 28,728,607 people, but age from 0-14 years old people up to 26.6%, that has 8,506,504 people. This shows our target markets still have sufficient development space.

Market Size and Trends Our business target is 0-12 years old, but they didnt have any income. So, they can through their parents to use our product. When children grow up slowly, they will become less of parental love. Many parents because of work and ignore their children study. Children will easily affect by their friends and didnt pay attention on their school work. Our product can help the parents and their children easily. kidnet provides a lot of information about the learning. They can learn more knowledge anytime and anywhere during visit our website.
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Competition In fact, there are a few or more competitors in the same industry. Our social network has few existing competitors which are facebook and kidzworld as at below:

Competitor -a classic social network.

Strength

-provides a lot of games and some special application. facebook -most famous social network has more than 845 million active users. -easily connect to all close friend and family members. -First social network for kids. Kidzworld -provided chat rooms, message boards and forums. -special customize for children. -system automatic filters all unhealthy information. -register under our company certification or through the school. kidnet -provide different teaching material for different level age of children. -every month system will send a summary report for their parents.

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Marketing Plan Market Strategy Sales and Distribution kidnet will focus on children education to process. So, we will cooperation with government education bureau. The department will provide the pass year question or expected exam range. Each exercise is set exactly as the actual examination paper format and children have the options to select questions either by year or by random. This exclusive and invaluable feature allows children countless practices thus help and condition children to be exam ready in the real examinations. When children complete the practical exercise, system will save and updated the record and send it to their parents. This process allowed parent keep track their childrens performance on practical exercise. kidnet also provide the online dictionary to help define or explain the meaning of any words in question. In addition, video of teaching will uploaded and shared the solution for specify question. This will make children more understanding and become interested during study. kidnet will use many methods to penetrate this target market. One of the primary methods will be referrals from satisfied customers.

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Pricing Starting a new firm, the firm must decide where to position its product and quality and price. The pricing of kidnet are below the markets price to attract customers with keep the good quality of services while keeping costs below than competitors. Product Multiple Exercise and Games Online Tuition 2 in 1 Family package (2 children) Family package (3 children) Price RM 50 RM 50 RM 80 RM 80 + RM 64 (discount 20%) = RM 144 RM 80 + RM 64 + RM 40(discount 50%) = RM 184

Advertising and Promotion Advertising is any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor. Ads can be a cost-effective way to disseminate messages, whether to build a brand preference or to educate people. Our firm will use an outside agency to help create advertising campaigns and to select and purchase media. Advertising agencies are redefining themselves as communication companies that assist clients to improve their overall communications effectiveness by offering strategic and practical advice on many forms of communication. Types of major media: Medium Newspaper Advantages -Flexibility

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-Timeliness -Good local market coverage -Broad acceptance -High believability -Combines sight, sound, and motion -Appealing to the senses Television -High attention -High reach -Audience selectivity -Flexibility Direct mail -No ad competition within the same medium -Personalization -Mass use Radio -High geographic and demographic selectivity -Low cost -High geographic and demographic selectivity -Credibility and prestige Magazines -High-quality reproduction -Long life -Good pass-along readership -High selectivity Internet -Interactive possibilities -Relatively low cost

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Media types have different potential for demonstration, visualization, explanation, believability, and color. Whereas advertising offers a reason to buy, sales promotion offers an incentive to buy. Sales promotion includes tools for customer promotion. Sales promotion for customer promotion, trade promotion, and business and sales-force promotion.

Consumer-Promotion Tools: Offers to customer of savings off the regular price of the Price packs product, flagged on the label or package. Inviting prospective purchasers to try the product without Free trials cost in the hope that they will buy. Using our own product to advertise another Cross-promotion noncompeting product.

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4.0 Operation 4.1 Premises

4.2 Identify Location

Our company will be established thought the internet which is by the server. Therefore we are requiring a space to set up as our office. The location our office is111,Block E, Phileo Damansara I No. 9, Jalan 15/11, Off Jalan Damansara 46350 Petaling Jaya,Selangor and which has a lowest rental RM1100 per month only. We will use the office as a place to store all our server, backup system, computers and so on etc. At the beginning, we will target on 10% of kids in our country first that is 8,000people. So, we just need a basic online server for starter our company. If our social networks for kid are very compliment by people then we will plan to increase our webserver gradually

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4.3 Hours of Operation Many people around the world with our social networking, so we have a permanent online presence when they create profiles, share photo, share their thoughts with friends and spend hours just catching up with what hundreds of friends are doing with their life. To prevent our system hack by other and bug, we will have a maintained for monthly and provide some feedback system. So thought those users feedback we can have more

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improvement and our server can run through more smoothly. Therefore, our working hours will be 24 hours to make all our services are run on and our office hour is from 8.30 a.m. 9.30 p.m. Saturday and Sunday will be day off.

Management Function Management is the process of guiding the development, maintenance, and allocation of resource to attain organizational goals. As we study management functions are basically consists of four functions which are planning, organizing, leading and controlling. These four management functions can help manager increase the company efficiency and effectiveness. Besides that, management functions also provide useful ways of classifying information about management and they are essential to a manager to administer the company in a good manner.

Management Team

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Chief Executive Officer Choo Ming Hui Chief Financial Officer Gan Yoke Yin Software Engineer Kueh Si Shyan Lim Ann Kit Design Director Lim Shiau Ching System Administrator
Choo Ming Hui

Tutor and Counselor Employee A Employee B Employee C

Organization Chart Position Chief Executive Officer Chief Financial Officer Software Engineer Design Director System Administrator Tutor and Counselor Total People 1 1 2 1 1 3 Salary / Month RM 3800 RM 3500 RM 3100 RM 3000 RM 2800 RM 2500 Total : Total RM 3800 RM 3500 RM 6200 RM 3000 RM 2800 RM 7500 RM 26800

Employee Job Description

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Chief Executive Officer Requirement

A communicator. A problem solver. A visionary. Expertise in the Internet Development of strategies business partnership. Strong leadership quality as well and strong communicator skills. Having experience in management and business development.

Responsibilities
Must have a vision. Able to scan the environment for hints of future changes within the industry. Look into future and predict changes as well as to project solutions to these changes. Set performance standards for the company and promote those standars with confidence.

Chief Financial Officer

Requirement
At least is an ACCA certificate holder. Completion of a bachelor's degree at an accredited college or university or equivalent work experience. Certied Public Accountant (CPA) preferred. Communicated effectively in both written and verbal form.

Responsibilities
Coordinate for the monthly end closing activities. Prepare the management reports for the monthly management meeting. Organizational development, human recources, and program operation. Foster and cultivate business opportunities and partnerships.

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Software Engineer Requirement

At least have a foundation in the C programming. Strong interpersonal communication skills. Extra knowledge of HTML, JavaScript and CSS.

Responsibilities
Create application on the web. Programming the software and organizing and formatting text. Takes requests from users for a particular web application, translates the request into coding, and creates a functioning online application

Design Director

Requirement
At least have some programming skills Experience with a variety of media programs to add sound or film clips to web pages. Excellent in working with graphic software, like Photoshop of Javascript which can animated graphics.

Responsibilities
Fulfill needs or functions that we required to appear on the Internet. Create pages with a specific design, a uniform graphic set, and eye grabbing details.

System Administrator Requirement

At least have some programming skills. Server goes down, you are called to solve problem. Responding to service outages. Able to figure out what is wrong and how best it can be fixed in small amount of time.

Responsibilities
Evaluating website's analytics, such as user feedback. Maintain, back up and update existing websites for organization. Make sure the site's user interface is easy to understand and efficient. Operating securely and at optimum speed.

Tutor and Counselor

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Requirement Possess strong content knowledge in english, math, science, or social studies at the level you wish to tutor. Ability to explain concepts to young people of a variety of ages.

Responsibilities Offers help to understanding the difficult ideas. To be understanding and patient. Giving advice in proper way. Organize thoughts in such a way that benefits internally.

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6.0 Financial Estimated Initial Cost to open KIDNET OFFICE Our location for opening the pet shop is at Malacca.

General Breakdown Real Property (RENT) Equipment Security System Renovation Costs Insurance Opening Advertisement License Miscellaneous Expenses Backup Total Initial Investment

Cost ( RM )

Purpose

Have a specific place to manage 13,200.00 our business For business services, server, 20,000.00 website For company safety, server 10,000.00 maintenance, customer privacy 15,000.00 Comfortable office for employee 60,000.00 For company and employee safety

20,000.00 To get more business 3,000.00 To prevent break of law 5,000.00 Miscellaneous fees 20,000.00 Backup for exceed fees 166,200.00

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6.1 Projected Profit and Loss a) b) c) Utility (water and electric) increases 10% per year Supplies increases 5% per year Depreciation (equipment) decreases 20% per year

Income Statement For Three Years 1st Year (RM) Revenue Expenses Rental Renovation Costs Equipment Security System Insurance Royalty Advertising Worker Salary Utility (water and electric) Total Expenses Earning before tax Tax expenses (15%) Net income/Net loss 13,200.00 15,000.00 20,000.00 10,000.00 60,000.00 3000.00 20,000.00 321,600.00 8508.00 471,308.00 328,692.00 49,303.80 279,389.00 80,000.00 3000.00 50,000.00 321,600.00 8508.00 486,308.00 3,513,692.00 52,7053.80 2,986,668.20 100,000.00 3000.00 50,000.00 381,600.00 8508.00 566,308.00 7,433,692.00 1,115,053.80 6,318,638.20 13,200.00 0.00 10,000.00 13,200.00 0.00 10,000.00 800,000.00 2nd Year (RM) 3rd Year (RM)

4,000,000.00 8,000,000.00

Investor can get back the return of investment in year 2.

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Balance Sheet Asset Cash and Bank Fixed assets Equipment Total Assets Liabilities Bank loan and Borrow Net Income Total Liabilities 139,694.50 93,505.00 233,200.00 RM 200,000.00 13,200.00 20,000.00 233,200.00

6.2 Projected Cash Flo

Cash Flow Statement is the statement that shows the flow of the cash that being used for the first year, or longer, depending on the importance of cash flow and the time needed for the business to become cash flow positive. If we want the business to continue in well condition, the most important factor is the cash flow of the business. If more cash accumulated in the business, it will ensure the solvency of the business. In addition, if the cash flow is in good conditions, it can allow the business to expand and to adopt more future development project plan. Investors and others will seek to establish that the business will not run out of cash before it reaches profitability. The cash flow shown below is the forecast information that portrays the cash flow condition of our pet shop in the future 3 years. Cash Flow 1st Year 2nd Year 3rd Year

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Cash flow from operating activities Cash flow from investing activities Cash flow from financing activities Net increase in cash Cash at beginning of period Cash at end of period

328,692.00 (44000.00) 168600.00 (2400.00) 0.00 70700.00

3,513,692.00 6,318,638.20 200000.00 (20000.00) (2000.00) 0.00 291450.00 560000.00 (20000.00) (2000.00) 0.00 770787.50

6.3 Operating Activities 1st Year (100118.00) 75000.00 (5500.00) (51500.00) 2nd Year (8050.00) 251000.00 (4000.00) 113450.00 3rd Year 208,659.20 23000.00 (1000.00) 232787.50

(Loss) / profit before tax Adjustments for non cash items Changes in working capital Tax paid Net cash (used in) / from operating activities

6.4 Investing Activities 1st Year Development costs Acquisition of other operating assets Interest income Net cash (used in) / from investing activities (46000.00) 90000.00 (44000.00) 2nd Year 200000.00 200000.00 3rd Year 560000.00 560000.00

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6.5 Financing Activities 1st Year 100000.00 89000.00 (18000.00) (2400.00) 168600.00 2nd Year (18000.00) (2000.00) (20000.00) 3rd Year (18000.00) (2000.00) (20000.00)

Proceed from issuance of shares Term loan drawdown Term loan repayment Interest payment Net cash from / (used in) financing activities 6.6 Break-even Analysis

The following table and chart summarize our break-even analysis.

Fixed cost Yearly rent Equipment Total Fixed Cost Variable Cost Average Cost of Product (per unit) Total Variable Cost Average Selling Price (per unit)

13,200.00 20,000.00 33,200.00 5.00 5.00 100.00

Break Even Point = Break Even Point = Break Even Point = Break Even Point =

Fixed Costs / (selling price - variable costs) 33,200/ (100-5) 33,200 / 95 350

To break event the company must sell 350 units per year

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5.0 Critical Risks 5.1 Potential Problem

A. Facing enormous competitors Nodaway, social networks have become part of own daily life. Thought the social network people can sharing photo, video, getting latest news or information and so on. Naturally there will have more and more social network, so we will face enormous competitors such as Facebook, Twitter, linked in and Google plus etc. In addition our social network is new concept and target market for kids only, so our market will be small compare to the other and not so many people will get to know about it. Besides that, many people just got comfortable use other social.

B. Oppose by the parent Using social network web site is among the most common activity of todays children and kids. Such sites offer todays youth a portal for entertainment and communication and have grown exponentially in recent years. Using social media maybe becomes a risk to children and kids more often than most adults realize. Most risks fall into the following categories: peer-to-peer; inappropriate content; lack of understanding of online privacy issues; and outside influences of third-party advertising groups. They are spend more time on social network are better at showing "virtual empathy" to their online friends. For this reason, it is important that parents become aware of the nature of social media sites, given that not all of them are healthy environments for children and adolescents. Those kid and children whos addicted on social network will also fail to achieve good in academic.
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C. Security risk It is a band new social network; we will face lack of experience on the security site. It is very important to protect all privacy and document for our entire user. There will be a risk if someone had hack into our serve. And nearly every social network fails to some degree. For example, MySpace saw users abandoning the site in droves after spam artists started using profiles as bait for illicit websites. Facebook users are sometimes deluged when friends inadvertently send out requests to install applications. And users on LinkedIn have been barraged with promotional emails or requests for introductions from overzealous contacts. MySpace and Facebook are still struggling with the issue, but there's a quick fix for LinkedIn. If the safeguard that we implement is not strong and good enough we also facing difficulty to overcome this type of problem and minimum the spam. D. Server Down Server down problems can allowed to occur by electric break down, hardware spoiled or software jam, as it is concerned about image and goodwill of the company. User ill be disappointed for the case. 5.2 Obstacles and risks

1. strategic, for example a competitor coming on to the market 2. compliance, for example responding to the introduction of new health and safety legislation 3. financial, for example non-payment by a customer or increased interest charges on a business loan
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4. operational, for example the breakdown or theft of key equipment 5. environmental risks, including natural disasters 6. employee risk management, such as maintaining sufficient staff numbers and cover, employee safety and up-to-date skills 7. political and economic instability in any foreign markets you export goods to 8. health and safety risks 9. commercial risks, including the failure of key suppliers or customers

5.3 Alternative courses of action

To overcome facing the other social network, our Kidnet will have different concept and unique compare to other social network. Kidnet is special customize for children and we will have a system it will auto block all unhealthy photo, video and sources. We are having different learning materials, this can let children learning form fun. We also provide online tutoring, organize some activity, trip or camp for children. We will make a statistic for parent about how our children improvement. We are highly recommended children to access our social networking. Therefore we will take action to those above the age of 17 year old. Furthermore, we will make sure those children register our social network are under permission by their. So, their parent can know all their child activities on social network and discuss removing inappropriate content or connections to people who appear problematic. To make our server are secure, we maybe hire some consultants whose are professional in the network security for a short period. So, they can give us some advice to overcome any problem we will face in the future.
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Due to the server down this problem, we will implement a data backup system to prevent any accident for lost data when blackout or disconnect.

Harvest strategy SWOT Analysis Strength Good service and reasonable price. Keep on update. More information. Live ONLINE education. Attractive promotions. Management is committed and confident. Easy to contract. Easy to set up.

Weaknesses
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More competitors appeared. Lack of tools or resources to track and monitor social media campaign results.

Opportunities Threats New comer competitor. Hacked by hacker. Higher opportunities to expand our business.

Harvest Strategy in another name can call exist strategy, is the way an entrepreneur or investor intends to extract his money from a business after it has become successful. This section of a business plan details what strategy the entrepreneur has chosen, and how much money he expects to gain. There are 3 type of harvest strategy use for our company. IPO (Initial Public Offering). Our Company allows the shareholders to remain active in management while reducing their holdings over time. This strategy can exposure, prestige and public image of our company and attracting and attaining better management and employees through liquid equity participation. Our company will work with government on department of education. We will provide more puzzle games on our social network for children and spread the online education to the children. We category rank of the children into 3 that are kinder garden that are from 3 years old to 6 years old, primary school that are

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from 7 years old to 12 years old, and the last one is junior high school that are from 13 years old to 15 years old. Private Sale. A sale of the company to a private buyer, most likely the initial licensee looking to backward integrate. In long term the social network will replace by another so we decided when the economic come to steady we sell the company to other companies or competitors.

Milestone and schedule Timing and Objectives

As a preparation of the selling product, we need to consider about timing and finish each task before the predefined schedule.We have to schedule everything and follow the deadline precisely as timing is important. This is because if one task is delayed or prolonged, the next task most probably will be delayed as well because the time frame has been out of schedule for example, if the marketing department make their promotions that we are opening on a specific date but the business license havent been approved by the city council. This would not only make our reputation bad but also inflict loss as we lose our customers trust.

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Milestones and deadlines Milestone Initial Meeting Introducing and Implementing our Business Prepare Business Plan Register our business Apply for license Staff Employment Staff Schedule Research & development product Final checking for Product Promotions and Advertisement Start Date 13/4/12 20/4/12 End Date 19/4/12 27/4/12

28/4/12 7/5/12 8/5/12 26/5/12 11/6/12 21/6/12 1/7/12 31/7/12

6/5/12 7/5/12 25/5/12 10/6/12 20/6/12 30/6/12 30/7/12 21/7/12

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Product out

22/7/12

22/7/12

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10.0 Bibliographic Book Eileen Figure Sandlin, Entrepreneur Press, Cheryl Kimball, Pet Business And More, Jere L.Calmes, Canada, 2009, 256 pages.

Web Page 1. Pet Shack Online Pet Store, PetShack.com, http://www.petshack.com.my/ Date Accessed : 23 July 2011 2. Super Pet, SuperPetusa.com, http://www.superpetusa.com/small-animals/general-care/grooming/ Date Accessed : 28 July 2011 3. House of Groomers Pet Grooming Salon and Academy, HotFrog.com, http://www.hotfrog.com.my/Companies/House-Of-Groomers Date Accessed : 05 August 2011

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11.0 Appendix

Online Education

Online brain games

Social Network

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