ENTREPRENEURSHIP UNIT II

INTERNAL ASSESSMENT

Names: Ajae’ Clacken: 1000820154

Jamaul Hall: 1000820448

Liam Elliot: 1000820294

School: Munro College

Centre Number: 100082

Candidate Number:

Year: 2021- 2022

Teacher: Mrs. P.Findley-Murray

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Territory: Jamaica

TABLE OF CONTENTS

CHAPTERS PAGE

Acknowledgement………………………………………………………..………..….3

Introduction ……………………………………………...………………..………….4

Research Objectives …………………………………..…………………………..….6

Target/ Sample ………………………………………….……………………………7

Methodology …………………………..………………….…………………………8

Limitations………………………………………….………………………………9

Questionnaire………………………………………….……………………………. 10

Presentation & Procurement Analysis...…………………………………………… 12

Findings…………………………………………………….……………………..18

Conclusion…………………………………………………………………..…… 20

Recommendations………………………………………………………….……. 21

Business Model …………………………………………………………...………22

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 Financial Analysis Summary …………………………..…………………..…….27

ACKOWLEGEMENT

The successful brainstorming, execution and collation of this Internal Assessment was made

possible firstly through the strength, grace and love that proceeds only from the Father Almighty.

We thank God for the necessary tools and abilities to effectively compile this IA. Additionally,

we would like to express gratitude to our able and efficient teacher Mrs. Paula Findlay- Murray

who was pivotal in concentrating our passions to the subject content, enabling us to pull off this

IA and for the unceasing motivation to getting the task done. Finally, we express thanks to our

families who furnished us with the adequate tools and devices necessary for the completion of

this activity.

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 INTRODUCTION

KARNET is a business entity created with the intention to

sell motor vehicles and a myriad of other car paraphilia

to accentuate and detail motor vehicles. The business

name is corruption of the English words Car and Internet.

This meagre detail is major as it signifies the business’ intended

mandate to conduct regular and up to date business

transactions mobilizing the virtual space. These

transactions include observing all protocols of buying a vehicle virtually, with significant

customer care assistance and a drop off feature where the car is delivered to the buyer’s

home/intended drop off point.

Buyers will be able to purchase a wide variety of car brands including but not limited to: Toyota,

Honda, Nissan, BMW, Benz, Volkswagen etc. The location of the business will be in Potsdam

District, Munro College St Elizabeth and phone numbers (876) 965-7615 or (876) 965- 8710 and

email: [email protected] and our intended website is www.kar.net.com. This location was

selected- as remarkable development has recently undergone in the vast area and yet there exists

major problems where public transportation is concerned. Additionally, the owners of the

business are of the educated knowledge that the area has become highly condensed with

returning residents and inflation of new international residents. It is novel concept to the area and

noteworthy Car Marts are far away and offers lesser amenities. The region increasingly lends

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itself to development and KARNET aims to be a part of said development. It is the owners

confirmed postulate that the endeavor will thrive. The slogan for the business is ‘Don’t Worry,

Drive Happy’.

The business concept will be formed as a result of a partnership deed to be made by: Ajae’

Clacken, Jamaul Hall & Liam Elliot. In keeping within Jamaican legal jurisdiction, the business

will be listed under the Companies Office of Jamaica.

In fulfillment of the principle of market research, the entity wants to use this to guide

proceedings geared towards pricing, the employed strategies by competitors and an elasticity of

demand in the market ought to be taken into consideration. The market research will aid the

business to identify their target market and was in which they can make the product appeal to the

target market. It will also show possible opportunities for expansion for the business.

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 RESEARCH OBJECTIVES

▪ To determine effective ways to promote the business endeavor.

▪ Ratify strategies to determine greater profitability for the business entity.

▪ Assess in detail the target market and draft strategies to better appeal to prospective

customers.

▪ Develop strategies to garner value for the business endeavor.

▪ Assess in detail how pervasive e-commerce is in the intended business area.

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 TARGET SAMPLE

In an effort to accurately garner public opinion the stratified sampling technique was utilized.

This sampling method involves the division of a population into smaller subsets classified as a

stratum. In this technique strata are formed based on individuals sharing similar characteristics,

such as preference, educational achievement and income.

The research saw to the population of One Thousand (1000) and a sample size of 500

correspondents. Persons were issued questionnaires based on their age and whether they had

disabilities or illness. Income was also a factor because most of the vehicles are only affordable

by people with high income.

The entirety of the population size consisted of adults between ages eighteen (18) to sixty (60).

The consequent for such a decision is because persons under eighteen years of age are not

eligible to drive or buy vehicles buy cars. The factors of disabilities and sicknesses were also

considered, as persons who exist with these ailments are often dissuaded from purchasing motor

vehicles. Considering the aforementioned, the researchers believe it would affect the validity of

information collected from the research carried out.

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The business will also garner the preference of the consumers, stemming from luxurious, SUV’s,

Compact Crossovers, Off Road, sport cars etc… This aims to attach better validity to the

entrepreneurial pursuit.

METHODOLOGY

In partial fulfilment of this Internal Assessment, the research was executed in qualitative and

quantitative forms. The researchers utilized questionnaires as a source of primary information

and data from the internet (websites) as a secondary source. The combined effort of the team saw

to the creation of the questionnaire in approx. 15- 20 mins and an extra 5 minutes for reviewing,

clarification, further exposition and grammatical consideration.

The data was collected on December 16th, 2021.

The advantage of using the questionnaire is that it furnishes a high response (almost immediate)

time and the deductive investigation for further details and if needed deeper expressions and

interpretations. Additionally, the internet provided a plethora of information in little time and

such information is shared form multiple perspectives.

In totality, 12 questions were asked. The questionnaire had a blended consensus of open and

closed ended questions. Eight closed ended questions were asked and four open-ended questions.

The data was collated and presented using charts and graphs for easy analysis.

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 LIMITATIONS

The researchers encountered various difficulties as we tried to navigate this research. Though

there was a determination to adequately acquire exceptionally valid information that would in

turn hope to promote productivity, this task proved difficult. Furthermore, the strategies

employed to collate the data came with its own limitations.

QUESTIONAIRES prove to open the scope for:

▪ Dishonest Answers.

▪ Hard to effectively convey emotions and feelings using a questionnaire.

▪ Lack of Personalization.

Tis research in particular saw the emergence of many unanswered questions by the respondents.

That left us in a precarious position in terms of what the respondent was thinking and why opt

from answering?

In addition to this, the magnitude of the sample (500 respondents) proved hectic when collating

the data and presenting them on charts and diagrams for the team of a mere three (3) persons.

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The nature of the research itself somewhat is in the consideration of being expensive (dealing

with cars). Usually, persons are of the opinion that these ‘motor conveniences’ are too expensive

and may shy away from the entire notion. Without persuasion of providing a practicable solution

of payment it can be often difficult to compel potential buyers.

QUESTIONNAIRE

1. Do you currently own a car?

Yes ( ) No ( )

2. If no, which type of car would you be interested in?

(a) Honda (b) Mitsubishi

(c) Toyota (d) BMW

3. How would you like to be Informed of any activities in the business such as deals, discounts

etc.…?

(a) Television (b) Cable TV

(c) Social Media (d) Telephone

(e) Billboard. (f) Other

4. How would you like the business to add value to its products/services?

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5. Do you have access to the internet?

Yes ( ) No ( )

6. If yes, how knowledgeable are you of E-Commerce?

7. Which method would appeal more to you regarding shopping at KarNet?

(a) In Store Purchasing (b) On-line Purchasing

(c) Telephone Purchasing (d) Other

8. Which other product/service would you like to see KarNet provide that is beneficial to you

and profitable to the business?

9. Which age group do you belong to?

(a) 18-24 (b) 25-31 (c) 32-38 (d) 40-50 (d) 51 and above

10. Do you have any of the following conditions?

(a) Hypertension (b) Diabetes (c) Physical Disability (d) Other

11. What is your level of education?

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_____________________________________________

12. Which category does your income falls monthly?

(a) $50,000-$80,000 (b) $81,000-$120,000

(c) $121,000-$150,000 (d) $151,000 and above

ANALYSIS OF FINDINGS

Fig 01

DO YOU CURRENTLY OWN A CAR?

44%
56% OWNED
DOES'NT OWN

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The pie chart above shows a graphic representation based on the correspondents on if they own a

motor vehicle. 56% of the respondents indicated they already have a vehicle whilst 44%

indicated that they do not have a motor vehicle. Of the 500 respondents, 45 individuals opted not

to answer the question.

AGE OF RESPONDENTS

50+ 18-24
24% 16%
25-31
20%
40-50
22%
32-39
18%

18-24 25-31 32-39 40-50 50+

The graph above shows the representation of the age of respondents. The majority, 24% was 50

and older, whilst those between ages 40-50 made up 22% of the respondents, ages 32- 39 made

up 18%, ages 25-31 made up 20% and ages 18-24 made up 16%. Of the 500 respondents 61

persons opted not to answer.

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 CAR BRANDS PREFERED
100
90
80
70
60
50
40
30
20
10
0
HONDA TOYOTA MITSUBISHI EUROPEAN CARS |
BMW, BENZ ETC

According to the chart above 75 of the individuals responded that they would prefer a Honda

brand car, whilst 90 persons opted for Toyota and 60 persons veered towards selecting the brand

Mitsubishi. 20 persons however expressed interest in a more classic solution in selecting

European vehicles Benz, BMW etc. Of the 500 persons, a total of 255 opted not to answer the

question.

PREFRENCE METHADOLOGY SHOPPING

AT KARNET

5%
16%
13%

IN STORE
ONLINE SHOPPING
TELEPHONE PURCHASING
OTHER

66%

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According to the chart above 66% of the respondents indicated they would prefer online access

to utilize KarNet’s Services while 16% stated they would appreciate going in physically to

instore shopping. 13% indicated a desire to do it via telephone and 5% opted for another

resolution. Of the 500 respondents, a total of 195 persons opted not to answer the question.

HOW WOULD YOU LIKE TO BE INFORMED

ABOUT DEALS?

3%
10% 18% TELEVISION
SOCIAL MEDIA
17% BILLBOARD
CABLE TV

32% TELEPHONE

20% OTHER

According to the graph presented above it shows that the majority of respondents (32%) would

like to be notified about deals and discounts primarily by social media. Other respondents would

have noted they preferred billboards 20%, another 17% noted they prefer to be notified by cable

tv, 18% preferred television, 10% pustulated telephone and 3% postulated other. Of the 500

respondents a total of 218 opted not to answer the question.

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 HEALTH CONDITIONS

3%
8%

10% Hypertension
Diabetes
46%
Epilepsy
Physcial Disability
Other
33%

According to the graph above it can be seen that majority (46%) of the respondents have

Hypertension. It can be seen that 33% of respondents have Diabetes while another 10% have

Epilepsy. Additionally, it can also be seen that 8% of the respondents have a Physical Disability

while the remaining 3% indicated other.

Of the 500 persons, a total of 348 individuals indicated they don’t have ailments.

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 INCOME ANALYSIS
120

100
100 100

80

60

50 50
40

20

0
50k- 80k 81k-120k 121k-150k 151k - ABOVE

According to the graph above it is observed that 50 persons indicated that their monthly income

falls between $50,000-$80,000 while another 50 persons indicated that their monthly income is

$150,000 and above. It is also observed that 100 persons indicated that their monthly income

falls between $81,000-$120,000 while the remaining 100 persons monthly income falls between

$121,000-$150,000. Two hundred respondents opted not to answer the question at all out of the

totality of 500 respondents.

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 FINDINGS

Product Characteristics

The product that’ll be offered are Cars of various makes and models. There will be the option of

having the buyer come on site to facilitate a transaction or facilitate the entire process online.

Market Analysis

The market consists primarily of persons over 50+ and significantly good representation from

persons from the other age groups. The area due to its strategic location is underrepresented with

public transportation therefore is ideal in terms of persons getting their own vehicle. There has

also been significant modernization and improvements in technology in the area that demands

this paradigm shift for the better. KarNet plays into the whole strata of modernization.

Sales Analysis

The business expects the yearly sales/income to increase gradually as various models of different

cars are expected to come on the market offering significant variety. Additionally, the demand

for cars coupled with the two tiers in person and online portfolio adds significant value to an

increase in overtime projected sales.

Customer Analysis

Our consumers consist of a wide cross section of people. As we cater universally to persons

above the age of 18 years old. The ratio of persons with a car and those without are relatively

close. A lot of persons don’t have the time to be stopping from work or even the ease to journey

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and visit a Car Mart for days to select a car. With KarNet, they can browse, select and blacklist

and reserve cars they have the intention of buying. Business transactions can be facilitated via

the online platform and delivered to your door as soon as transactions are completed. Based on

the research, many persons are optimistic about the online approach by KarNet.

Promotion and Advertising

The consumers will be notified of business processes/ agendas via social media and the

Television as according to the research most persons have access to internet and social media

and watch television The respondents selected these modalities as the two most popular.

Pricing Strategy

The pricing will be based on the cost of the Cars additionally with the added services will still

see us operating a little below the expectation of the market so as to grab the attention of

customers.

Competition

The competition that exists currently are those far away in the capital and even then, they do not

deliver cars directly to you. The companies in the capital have had a name that has existed for a

longer period and has renowned themselves for decades. Their products are also significantly

expensive due to the professionalism and quality they claim to provide. We have done extensive

research into the market as well as improved the car sales game with ecommerce and that gives

us a competitive edge.

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 CONCLUSION

In conclusion, the research was successful when compared to the objectives established to

achieve. Individuals were optimistic about the approach of KarNet in the aspect of Ecommerce

and its position in advancing the modernization process of the area. All respondents indicated

their ability to access and navigate the internet and they have knowledge of e commerce. Based

on their income KarNet caters to them all. In all spheres respondents possed an interest in

owning a motor vehicle, has a brand of vehicle they are interested in getting and would prefer the

Social Media option of being notified about business operations and incentives. They all have at

least a Secondary education and pivots themselves to support and engage in business with

KarNet.

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 RECOMMENDATIONS

▪ The business should invest in an online webpage creator.

▪ Technologically Savvy employees who can navigate a myriad of different online

situations.

▪ Social Media ambassadors who can market the business.

▪ The business should have quality cars that will be appreciated consistently by consumers.

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BUSINESS MODEL

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OBJECTIVES

1. To achieve a potential significant 55% growth in 3 Years.

2. To supply the citizens of Potsdam and surroundings with ANY Car they require.

3. To supply services at an affordable cost.

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HISTORY OF THE VENTURE

▪ The inspiration that influenced the venture was conceptualized as a means to offer a more

modern and pragmatic solution to buying and selling motor vehicles. It brought into sharp

focus the initiative to harness technology and add the vim, vigor and vitality of

Modernization.

MISSION STATEMENT

▪ To offer professional and effective services in a bid to provide driving solutions to

customers.

VISION STATEMENT

▪ To Become the premier Car Dealership in the region with outlets spread over the

Caribbean to expand KarNet’s Influence and business optimism.

VALUE PROPOSITION

▪ . KarNet has the noble intention to sell cars of high quality and most affordable prices

using different modalities to customers. Since there are no a Car Marts s in the area, this

will it make it better for customers as they won’t have to travel a far to the capital to get

quality cars that they need. Direct distribution channels will be used in one of the

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 modalities as this will add a hint of comfortability and ease in completing what was

typically seen as a complicated process.

BENEFICIARIES

▪ KarNet is seeing to the provision of Cars at an affordable rate that will cater primarily to

the patrons of Postdam over 18 years old and later the greater St. Elizabeth Parish and

Jamaica. Cars will be ordered, bought from international sellers namely those from

Europe and Japan. KarNet will cater to the local Market primarily and thereafter engage

in regional connections and business

OPERATIONS

▪ The employees at KarNet features different competencies to enact the mission and vision

of the business. Customer Service is at the heart of operations and crucial to our success.

An individual can readily walk into the store and browse the cars available and select pay

for and buy or, they can place an order online, liaise with a sales representative that will

explain the features and communicate all concerns, questions and comments. All

documents can be submitted from the comfort of the individuals home, everything Is

processed, thereafter name time and place and your vehicle is delivered to your place of

choice.

PRODUCT DIFFERENTATION

▪ The customers rejoice in the feeling of satisfaction as employees are dedicated to

actualizing the mission and vision of KarNet. The feeling of family is a major part of our

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 operations as we dedicate time and effort to always improve. Getting regular and timely

feedback and suggestions from our customers is a major part of that customer service

attitude we’ve donned. KarNet’s approach to embracing the advancements of technology

and enhancements in the digital arena sets us apart from competitors. The ability to use

KarNet’s mobile app or web page interface allows for ease of browsing our wide cross

section of motor vehicles from cars, vans and trucks. It allows for real time almost

immediate assistance in liaising with a representative to secure your dream vehicle and

‘Don’t Worry Drive Happy’. Transactions and Business operations can be done from the

comfort of the customers home and delivered right to his/her doorstep. KarNet offers

your first full tank of gas, tracking and alarm system installment and your first service fee

all upon delivery to your point of location.

INCOME GENERATION

▪ KarNet’s operations stand to adopt a competition-oriented pricing strategy where the

product price is determined based on the average price in the market or a bit below the

average price in order to keep with competition in the market and gain market share. This

strategy will work on the premise that customers will switch to the new brand due to the

slightly lower prices, packaged deals, and value for your money. The advantages of the

strategy are manifested in the gaining of market shares and gaining customer loyalty.

The business will obtain revenue from loans secured from financial institutions, debt

financing, internet, mailing and direct sales service as well as after sales service.

GROWTH

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The business will initiate by making enough profit to pay its expenses. After expenditure debt is

paid to 85% completion in an estimated 1- 2 years. Investments will be poured into the business

in the hopeful 2 year of operations. When profits are made their will be a specific investment

made towards establishing other locations and a drive to our regional agenda this postulate is in 4

years of operations, a next business outlet is to be set up in another parish- St. James. The

donned model KarNet is adopting is known as a growth model.

SUMMARY – FINANCIAL ANALYSIS

KarNet
Cash Flow Statement for the year ended 31 December 2021
Cash Flows from Operating Activities
Net Income 15,000,000
Add
Income Tax 3,000,000
Interest Expense 1,500,000
Depreciation 1,500,000 6,000,000
21,000,000
Operating Profit Before working Capital Changes
Increase in Accounts Receivable (1,000,000)
Increase in Accounts Payable 200,000
Decrease in Inventory 150,000
(650,000)

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 Cash Generated from Operations 20,350 000

Income Tax Paid (3,000,000)

Interest Expense Paid (1,500,000)
(4,500,000)

Net cash Inflow from Operating Activities 5,000,000

Cash Flow from Investing Activities

Purchase of Equipment (2,000,000)

Net Cash Out Flow from Investing Activities (2,000,000)

3,000,000

Cash Flow from Financing Activities

Net Cash Flow from Financing Activities
Net increase in cash and cash Equivalents 3,000,000
Cash and Cash Equivalents at beginning 100 000
Cash and Cash Equivalents at End 341 000

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