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Finance

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A STRATEGIC BUSINESS PLAN FOR CHINA TELECOM

Prepared June 11, 2008 for Dr. Kevin
Qing Hua Dong Lu 17, Hai Dian District, Bei Jing, China, 100237 Dr. Kevin

Basic idea: Making a great profit after the new company set up and also have a forecast for our company; this plan is a program for doing this in CAU, China.

Prepared by
Wu Lei Alexander 0614810342
Wang Yang Ocean 0614810221
Liu xiao tian 0614810193
Deng Yu ning Jill 0614810292

Phone number: 010-8345287 010-8345288

EXECUTIVE SUMMARY
The method we used to analyze the new china telecom is much traditional method. We will use SWOT and PEST to show the most important information about the company. This has made planning easier and more profitable.

1. Our situation
Our company is combined with old CHINA TELECOM and CHINA NETCOM’s CDMA net system. It has another two companies in china will have the right to get the license for 3G service.

Market opportunities - We have the most telephone customer (not mobile phone customer) and CDMA net system have the advantage for upgrade 3G system.

2.Weapon resources
Our advantageous positions are tow main parts; One is we have we new kind of high-technology that is differ from the old kind of the 3G net service And the technology is our patented product .The orther is our high quality service,we deeply believe that the customer is the god and their require is our goal.We think we have the capability to do this.

Follows our forecast of the balance sheet:

Balance sheet in forecast from 2008 to 2009
|Year |2008 |2009 |
|Total currtent liabilities |1,200,122 |800,321,000 |
|Total liabilities |2,234,333 |2,100,289 |
|Total equity |2,456,233 |2,217,234 |
|Total L+E |4,690,566 |4,317,513 |

Total investment for our business is 200,200, first year.Details are in documents. Costs/Expense schedule budget: (Thousands )
Staff………………………………………………………………..$21,200
Eguipment(broght&depreciation)………………………………..$100,000
Rent/Utilities………………………………………………………$12,000
Advertising………………………………………………………..$42,000
Supplies/Tax/Other………………………………………………..$25,000
Total………………………….$200,200

The business plan would need $2,000,000.We can put in $800,000 as our capital injection from the current capital shown above.$1,200,000 is needed as a ten-year loan.

3.Objective Profit and Loss Projection (millions) 1stQ 2ndQ 3rdQ 4thQ 5thQ 6thQ
Billibg forecast $100 $200 $500 $800 $900 $1000
Cost to operate 50 100 250 400 450 540
Other costs 150 200 250 300 300 240
Profit(Loss) (100) (100) 0 100 150 120
Cumulative (100) (200) (200) (100) 50 170

4. Market Plan (tactics)
Prospects
We will try to become the biggest company in the three companies who has the license for 3G service and have the 50% market share of the 3G market.

Advertising.
More and more people use internet instead TV to know all kinds of information, so we decide use different styles of advertising to show our product. For example, we will collect the E-mail address from our old customers and give advertising E-mail for everyone to introduction our new products.

Other product. Our main product is service, the 3G service. We will set a team to make our own mobile phone. Because everyone who use our 3G net service must have a mobile phone it will have a great chance to increate our income if we sell service at time we also sell a mobile hone.

5.Production plan
Having a team to implode the mobile phone is one of the methods to increase our income. When customers buy our service they also buy our mobile phone. That is wonderful. Of course, we need a strong team to do this ting because it has many great mobile phone manufactures in the world.

6.Finance plan

Finance plan (thousands): Year 1 Year 2 Est. billing RMB 1,600 2,000 Est. costs 1,400 1,600 Profit/loss 200 400

7.People plan
Our company reguires least 35 employees; include 4 customer mangers 10 technical personnel,2 technical advisor,2 human resource managers,15 service stuffs,2 accountants.

8.Outsider plan
We will try to communicate with other small technology company which is study information technology. The new artistic talent employees are very important for a company and this people bring new thinking and different ways to solve problem.

9.Time plan

Person(s) Action Planned Date
Loan committee Setting up the basic policy for Jul. 1, 2008 the rest of the year.
Manager discuss the problems in the Jul. 30,2008 company.
Loan committee Summing up the experience Dec. 30, 2008 in this year

MARKET FACTS FORM

Company:
NEW CHINA TELECOM

Address:
Qing Hua Dong Lu 17, Hai Dian District, Bei Jing, China, 100237

Who are our present customers?
People who use 3G net system service.and the people whose cell-phone can support the technology for the 3G net system.

Who are potential customers?
We will try our best to make others to know our service and to decide to use it.We will help them get the 3G net service. And the customer will become more and more. Each one of them that who have cell-phone will become our customer.

Who are our competitors?
China Network Communications corporation and Unicom and so on.

Who’s the competitor to beat?
NEW CHINA TELECOM

How good are they?
Compared with us they have mature high tech technology but it can not stop our business.

Their strengths:
Long time of the cell-phone service and the high-technology.The have more mobile phone customers.

Their weaknesses: It is expensive to development 3G net system and their customers’ cell-phone can not support the 3G net system.

Their opportunities:
The have more mobile phone customers so they do not have to find more customers.And they can save more money to advertising and to catch new customers.

Their tactics:
High technical skill.Cuz they are the big company and their can invest lot of money to research this new technology.

Our Product:
3G system service and all the service arounding the cell-phone.

Our Price:
3G system service 50RMB/person/mouth and there are many choice can be choose.
Such as 80RMB/person/mouth that can use the service for all the time for free.And the customer can choose the service meal that is fit them.

Our Package:
Our employees will have extra money if the work over 10 years and can get a subsidy to buy a house and have the health insurance.

Our promotions:
If customer buy each one year service we will give he/she 2 mouths extra free.And in the end of the year we will exchange the total expense to gift .The customer can choose the gift that is free to give them.

Our Personal selling:
We will have the salesman introduce our product in many uptown.

Our PR and adv:
TV advertising and E-mail advertising and newspaper advertising. We will invite the most well-known star , he/she will be the vivid spokesman for us, and to pat the advertisement to create the propaganda.

What are we selling?
3G system service

What are our superiorities?
China Network Communications corporation and unicom

What do our competitors teach us?
Meets each customer's needs, takes dealer's final goal. Only then has met customer's needs, wins the market finally.We have two strange competitors.

What customer wants do we provide?
Wonderful 3G system service.

What customer benefits do we provide?
They will get the best service.

What can we do to improve?
Make the extra service in the market.

What is the total $ market?
China

What are keys to success?
Having more customers

When do customers buy?
Every mouth or year.We think the time is very flexible.

Where do customers buy?
Every telecommunication service center and the customer can also order the service through the phone.

Where are the best places to sell?
Uptown

Where is best geographic area?
Being Jing、Shang Hai and other big cities.

Why do customers buy?
Because this service are convenient. Because in the later, people's cell-phone’s function will be getting more and more perfect, it has can support the 3G network cell-phone's person be also getting more and more, but there is nobody can provide this aspect for them the service at presen. This let consums’ cell-phone depreciate, it was equal to that, this function did not have useful completely . This is consumer's loss, therefore, our company take the market supply and demand relations' principle, is providing this service as the general customers.

OUR 7 Ps (market facts)
Our Product: 3G system service
Our Price: 3G system service 50RMB/person/mouth
Our Package: Our employees will have extra money if the work over 10 years
Our promotions: If customer buy one year service we will give he/she 2 mouths extra.
Our Premiums: Every mouth/year will have Premiums gave to the employees who are hard working.
Our Personal selling: We will have the salesman introduce our product in many uptown.
Our PR and adv: TV advertising and E-mail advertising and newspaper advertising.

COMPANY FACTS FORM

Company name:
NEW CHINA TELECOM

Location:
Qing Hua Dong Lu 17, Hai Dian District, Bei Jing, China, 100237

Brief history:
Two big telecommunication companies combined. Because these two big companies’ size is very big, it is very difficult to manage them, therefore the company CEO reorganizes them. Our company is these two big company's successor. Therefore we would think about it, our company has the economy as well as technical ability very well.

Company manager:
Mr. Alexander He graduates from an American well-known university's management institute. He used to hold the post of the higher managements in two famous big companies.Therefore he has the managerial experience and marketing strategy brains.

Employees (groups):
Scientists and workers What our company in view of will be future handset service market, at present up to, this service had already been popular in China many years, but it will not be mature on the 3G net service, therefore, our company must invite the high tech personne in this aspect the ,they will help our company to be perfect this service, moreover, this service will be the new profession, therefore ,we must train the staff who is understanding and be familiar with this service, they will solve the problem for the later users.

Key advisors:
Mr. Ocean Miss Jill

What the business is:
Telecommunication service 3G net service and all the service arounding the cell-phone .

What the purpose is:
Give the best service for customers.We think the customer is the GOD!

What we sell:
Telecommunication service 3G net service and all the service arounding the cell-phone .

What our legal form of business is:
Corporation We will try our best to make the benefits to the shareholder.

When we sell (best):
At the beginning of a year. To be honest,we think anytime is ok.Cuz our plan was already mature,which can undergoes the market test.

Why we grew:
Because we have lots of potential customers and CDMA 2000 system.…...

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