Starting & Managing a Business Assignment

SECTION A - On an  individual basis,  formulate  a business plan to start a business at Singapore Changi Airport Terminal 4 for Angel Investor(s) to invest in your business.

Background

Singapore Changi Airport Terminal 4 started construction on 1 October 2011 in order to cater to the continued growth of air traffic at Changi Airport and further strengthen Singapore's air hub status. The new Terminal 4 will be built on the site of the former Budget Terminal and will be seven times larger. It is a two-storey, 25-metre-high building with a gross floor area of 195,000 square meters. AirAsia Group (consisting of AirAsia Berhad, Indonesia AirAsia and Thai AirAsia) has signed up as the anchor tenant for Terminal 4. The other airlines who have indicated interest include Hong Kong's Cathay Pacific, Korean Air and Vietnam Airlines. 

Terminal 4 was planned to be innovative with a heavy emphasis on the use of the latest technology. However, local cultural and heritage items will be used in decorating the terminal interior. The retail space will feature traditional Peranakan shop front facades.

Guidelines

1. The ECA shall be typed in Times New Roman font size 12 with 1.5-line spacing and block format. All graphs and tables must be numbered. Have a title and in-text referencing. Please upload your report in a Microsoft Word .doc format. All students have to follow the report format provided in this document.  

2. Ensure that your ECA is convincing. Refer to the relevant sections in the textbook, study guide and other notes given by the course delivery team, in order to complete the report.  

3. The student is free to conduct library research, field research, interviews, etc. during the writing of the business plan.

4. Assume that the following spaces are available at Singapore Changi Airport Terminal 4 for your business opportunity. There are two shop spaces available. The student is to select one shop to start their business. The floor size of the shops and its corresponding rental are listed below:

(a) 10 sq. meters at $15,000/monthly at the Transit Hall 

(b) 10 sq. meters at $9,000/monthly at the public Departure Hall

5. The first month of operation is the gestation period of the new business e.g. staff recruitment, renovation, staff training and etc. The first revenue can only be received by the new shop from the second month onwards in the financial forecast. 

6. The depreciation rate for any capital investment is a straight line over three (3) years. 

7. The Cost of Capital (Weighted Average Cost of Capital, WACC) formula is:

WACC = E/V*Re + D/V*Rd*(1-Tc)

Re = cost of equity

Rd = cost of debt

E = funding from equity

D = funding from debt / loans

V = E + D (i.e. total funding)

E/V = percentage of financing that is equity 

D/V = percentage of financing that is debt 

Tc = corporate tax rate

This is the full equation of the WACC formula and it must be used in this GBA. If any other simplified WACC formula is used in this ECA, 5 marks will be deducted.

8. The ECA business plan & other outputs should be written and presented from the three viewpoints - the Entrepreneur's, the Marketplace's and the investor's.

9. Report length is to be 20 pages (without appendices). Executive Summary must be only one (1) page long. All the three financial statements (Income Statement, Balance Sheet and Cash Flow) must be included in the main report. These three financial statements should be inserted as an embedded object in Word (use "INSERT > OBJECT") and NOT as a picture or image. Approximately 10 marks may be deducted for every additional page. Quality of content is more important than length.

SECTION B -

Prepare a video recording of the presentation of at least 3 minutes but not exceeding 6 minutes, targeting Anger Investors to invest in your business. There are two methods for ECA video assignment submission; either Record Media or Upload Media. For Upload Media, please note that your file size should be no more than 500MB and the format is in .mp4.

SECTION C -

Prepare a set of PowerPoint presentation (maximum of 14 slides, including the cover page) upon which the video presentation is based. Please note that the PowerPoint must be converted to PDF before submission to MyUniSIM (Canvas).

Attachment:- Assignment File.rar