Question

Mohanned decided to start a water theme park in Barka , Oman . He prepared a business plan and submitted it to Bank Muscat to take loan of OMR 5000000 . He submitted documents of his 5 villas to get the loan from bank . After the bank issued loan Mohanned went to Oman chamber of commerce and industry and requested his new theme park named as Ross Island to be legally registered . After checking the documents the ministry registered the theme park as Ross Island LLC . Mohanned had partners who invested in this new business who were shareholders . The tourists who came to his place and the citizens who came to the Ross Island kept increasing . The entry tickets pricing was affordable many visitors came to his park . So Mohanned started Ross Island also in Salalah .

1 ) Is Mohanned an entrepreneur or Intrapreneur ? Define entrepreneur and intrapreneur .

2 ) Mohanned requested OMR 5000000 loan from Bank Muscat . What is this request called in Business Plan ? Define it .

3 ) Write the management team of Ross Island in your own words in two sentences .

4 ) Write the executive summary for Ross Island theme park in your own words in two sentences .

5 ) Write the company description of Ross Island in your own words in two sentences .

6 ) What are the advantages and disadvantages of starting this theme park ?

7 ) Mohanned decides to start one more Ross Island in Salalah . Is this called Market expansion ? Explain it .

8 ) He registered Ross Island as LLC . Define LLC .

9 ) Mohanned submitted documents of his 5 villas . What are these documents called ?

10 ) Do you think that this business will be successful ?

Answer 1

1.) Entrepreneur - Entrepreneur is a persons who owns the organization and takes highest risk.

Intrapreneurs - There is a minor difference between entrepreneur and intrapreneur. Intrapreneur is the employee of an organization, who is a part of top management.

The first and foremost thing that defines about Mohanned is that he conceived the idea of floating a new business and completed all necessary requirements on his own.Also, he has two partners who invested in a business (here termed as shareholders). So, Mohanned is an entrepreneur.

2.) It is a Bank Loan Proposal.

Bank Loan Proposal is a document for making application of loan. It is used by borrower and includes information such as : how much amount the borrower wants, reason for borrowing, repayment details, and other important information.

3.)Management Team - As question specifies, management team involves - Mohanned and his two partners as shareholders.

4.) Executive Summary of Ross Island Theme Park

Mohanned is a passionate entrepreneur with financially sound partners. They have a well-planned pricing strategy and an attractive location that attracts maximum views of people. Financial analysis reveal that Mohanned' Ross Island Theme Park will have positive cash flow and profitable for first 3 years. The expected return on equity is 12.52%(say for eg.).

5.) Company Description

• Mission and Vision Statement - To build an amusing and thematic park that customers will find both interesting and a perfect holiday place.
• Principal Members -

Mohanned - Entreprenur of Ross Island Park

Two Partners - Shareholders

• Legality - Registered at Oman Chamber of Commerce and Industry

6 ) Adavantages of starting this Park

• Theme parks are interestingly preferred by many families to visit for a recreational vacation. So, there would be regular customers .
• Pricing is kept affordable. So, it is not only beneficial for tourits but also for citizens. Affordable pricing is hence another major factor to increase customers.

Disadvantages of starting this Park

• The investment and maintainance cost would be high. So, it might be a risky factor for owners to offer low pricing.
• It is a seasonal business, that would attract more customers in summer. The owners would have to bear interest charges during off season.

7.) If Mohanned decides to start one more Ross Island in Sallaha, then it would definitely be a market expansion.

Market Expansion is a strategy of business to enter new markets when the existing market is in growth peaks. As is above case, Mohanned's existing business is in peak growth and he is planning to enter into different segment of customers.

8.) LLC is a limited liability company in which all partners has limited liability. It is a combination of company and partnership firm. It includes some features of company such as separate entity and some features of partnership firm.

9.) The document submitted to acquire loan from any financial institution or bank is termed as mortgage.So, the 5 documents are submitted as mortgage.

Mortgage is a loan used by borrower to raise loan by putting a lien on property that is mortgaged.

10.) The current market scenario reveals that this business is profitable. Executing and implementing a perfect business stratgey would definitely make the business successful. Moreover, the affordability and complete entertainment factor is a positive point for this business.