Proud to Present Flynow.com An online airline reservation company

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Proud to Present Flynow.com(An online airline
reservation company)

• Juweria Muqtadir
• Puneet Singh
• Purvesh Patel
• Davida Sumler
• Raymond Cata

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Executive Summary

• There are over 35,000 flights per day and many
  empty seats
• Large percentage of the traveling public has to
  make last minute travel arrangements
• Airlines charge customer hundreds or even
  thousands of dollars for not making a reservation
  at least 7-14 days in advance, even when many
  seats on flights go unfilled especially during
  off peek times and as the result of last minute
  cancellations
• Flynow.com will allow users to buy airline
  tickets up to 4 to 6 hours before departure by
  contracting with the major airlines to sell those
  seats at sizable discounts.

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Todays Agenda

• Business Proposal
• Target Market
• Market Share
• Project Charter
• Project Team Contract
• Stakeholder Analysis
• Scope Statement
• Scope Management Plan/Control Policy
• WBS/WBS Dictionary
• Business Plan
• Managerial/Marketing/Technical/Financial

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Business Proposal

• Allow airline passengers to buy tickets to all
  major airlines online
• Customers go to our website and select the
  destination based on location, time and price
• All fares reflect similar discounted prices on
  FlyNow.coms competitors like Orbitz,
  Travelocity, and Priceline
• Website will be using secure billing software
• An email and printable receipt will then be sent
  to the purchaser to verify payment and confirm
  travel arrangements
• An SSL certificate will be obtained and a
  vigilant effort will be made to secure all credit
  card information and customer data

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Target Market

• Who are our Customers
• People who need last minute tickets at affordable
  prices
• All Major airlines
• NWA, Delta, USAirways, etc.

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Market Growth
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Market Share

• Whole online airline reservation industry
• 86 billion/year
• Expedia.com45.3
• Orbitz.com .24.9
• Travelocity.com..23.1
• Priceline.com..6.7
• Others...3 (2.58 billion)
• We have about .00005 or 0.005 of the total
  market share, which is about 4,300,000 (4.3
  million)

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Project Charter-Objectives

• Design and build a website for FlyNow.com
• Fly Right Now feature allow customers to book
  last minute tickets
• Allow customers to buy airline tickets using
  secure billing software

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Project Charter-Approach

• Accomplish this by contracting with all major
  airlines enabling our customers to make last
  minute travel arrangements for sizable discounts
• Conduct a survey of customers and consultants
  concerning online ticket reservations
• Develop the internet site using an iterative
  approach, soliciting a great deal of user
  feedback
• Consult experienced project managers on similar
  projects

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Project Charter-Roles and Responsibilities
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Team Contract

• Code of Conduct
• Avoid conflict, take care of problems early.
• Keep other group members updated on information
  related to project.
• Work together as a team at all times.
• Participation
• Be open for new approaches and ideas.
• Keep discussions on track.
• Provide the opportunity for equal participation.

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Team Contract Contd.

• Communication
• Make a decision on the best way of communication,
  which is email, face-to-face meetings, and class
  time.
• Have the group project managers for their
  specific weeks arrange facilitate group
  meetings.
• Present ideas clearly and concisely.

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Team Contract Contd.

• Problem Solving
• Encourage everyone to participate in solving
  problems that may occur.
• Only give constructive criticism, not personal
  attacks against one another.
• Strive to build on each others ideas.
• Meeting Guidelines
• Meet as much as possible.
• Document major issues and decisions related to
  our project and email them to each team member.

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Key Stakeholders

• Raymond Cata
• Purvesh Patel
• Puneet Singh
• Juweria Muqtadir
• Davida L. Sumler

• Bank of America
• All Major Airlines
• NWA, Delta, etc.
• Website Q
• Other employees contractors
• Programmer Accountant

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Stakeholder Analysis

• Raymond Cata
• On the project team
• Very much a team player and likes challenges.
• Level of interest very high
• Level of influence very high
• Suggested that we use web log and wireless
  communications to keep in touch.

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Stakeholders Analysis Contd.

• Purvesh Patel
• On the project team
• Team worker, knowledgeable coder, detail oriented
• Level of interest very high
• Level of influence very high
• Suggested that we keep track of details and
  better communication.

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Stakeholders Analysis Contd.

• Puneet Singh
• On the project team.
• Very detailed oriented, team work is a must for
  him, timely and friendly person.
• Level of interest very high
• Level of influence very high
• Suggested that we all be team players and give
  100 effort.

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Stakeholders Analysis Contd.

• Juweria Muqtadir
• On the project team.
• Detailed oriented, team worker, timely and
  friendly
• Level of interest very high
• Level of influence very high
• Suggested that we have major project details
  written out instead of just oral conversation.

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Stakeholders Analysis Contd.

• Davida L. Sumler
• On the project team.
• Easy to work with, likes things done on time.
• Level of interest very high
• Level of influence very high
• Suggested that we work on the group project at
  home if necessary.

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Stakeholders Analysis Contd.

• Bank of America
• Financial provider
• Likes things done in a timely manner and is
  business focused.
• Level of interest very high
• Level of influence high
• Suggested that we keep them informed and to do as
  they say and do it quickly.

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Stakeholders Analysis Contd.

• All Major Airlines (Delta, NWA, etc.)
• Project sponsors.
• Demanding, business focused.
• Level of interest high
• Level of influence high
• Suggested that we ask them anything, they are
  willing to help out.

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Stakeholders Analysis Contd.

• Website Q
• Website designer.
• Very smart, best designer we know.
• Level of interest high
• Level of influence high very hard to replace.
• Suggested that we keep the company happy and they
  will stay with us.

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Stakeholders Analysis Contd.

• Other Employees Contractors (Programmer
  Accountant)
• Employees and contractors to hire.
• Business focused, easy to work with, and
  efficient and fast.
• Level of interest high
• Level of influence high
• Suggested that we pay them well and on time and
  there wont be any problems.

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Scope Statement

• Budget for the project is 50,000. Additional
  114,000 per year will be required for
  operational expenses.
• Borrow 80,000 from Bank.
• Team meets at least two times a week to manage
  scope of the project.

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Control Policy

• If Changes occur
• Urgent
• Team will come to decision over phone
• If not all member are available, then email will
  be sent to inform rest of team members
• Non-Urgent
• Team meets once a month to review changes

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WBS

• Initiating
• determine/assign project manger
• identify key stakeholders
• prepare business case
• prepare business charter
• prepare business plan
• Marketing/Managerial/Finance/Technology
• Planning
• Organize/schedule project meetings
• Prepare team contract
• Prepare scope statement
• Prepare WBS
• Prepare schedule and cost baseline
• Establish task resources
• Establish task duration
• Establish task dependencies
• Create Gantt chart draft
• Review and finalize Gantt chart
• Identify, discuss and prioritize risks

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WBS Contd.

• Executing
• Survey
• User inputs
• Website content
• Templates and tools
• Links
• Site Feedback
• Search feature
• User Help
• Website design
• Website construction
• Website testing
• Website promotion
• Website roll-out
• Project benefits measurement
• Controlling
• Status report
• Closing
• Review final budget

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WBS Dictionary

• Name Initiating
• Description defining and authorizing a project
  or project phase.
• Name Determine/assign project manager
• Description determine/assign the person(s) who
  will work with the project sponsors, the project
  team, and others involved in a project to meet
  project goals.
• Name Identify key stakeholders
• Description identify key people who are involved
  in or affected by project activities and include
  the project sponsor, project team, support staff,
  customers, users, suppliers, and even opponents
  of the project.

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Business Plan

• Managerial Plan-Davida
• Marketing Plan-Puneet/Raymond
• Technology Plan- Purvesh
• Financial Plan-Juweria

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Managerial Plan
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The Management Team

• Juweria Financial Manager
• Duties are to take care of all things related to
  finance (transactions, basic accounting, etc.).
• Purvesh Technological Manager
• Duties are to take care of all things related to
  technology (touch basis with programmer, etc.).

• Davida Human Resources Manager
• Duties are to take care of all things related to
  management (hiring firing, training, benefits,
  etc.).
• Puneet Raymond Marketing Managers
• Duties are to take care of all things related to
  marketing (advertising and sales, etc.).

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The Business Aspects

• As of right now, we are keeping the business on a
  small business level. We are not looking into
  franchising right now.
• We are only looking to hire 4 additional
  employees two full time and two part-time
  employees.
• Once hired, the new employees are required to
  attend training for 1 week.

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The Business Aspects Contd.

• Benefits included are
• Health and Dental
• Choice between HMO and PPO
• Vision
• Only free eye exams are covered.
• Vacation, Holidays and Sick Leave Days
• Will be working most holidays.
• Life Insurance

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The Business Aspects Contd.

• Retirement Plan
• 401K plan is provided with basic features
• Employee contribution
• Employer contribution
• Loans
• Additional Perks
• Disability
• Short term and long term
• Educational
• Employees are encouraged to seek further
  education to improve skills. Reimbursement is up
  to 2500 and restricted to 9 credit hours per
  term.

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Marketing Plan
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Market Analysis

• Our target market that we will be selling
  primarily to is general public. The total percent
  of business will be 100.
• Our target Customers will be worldwide. Our
  target industry is all major Airlines for
  example Northwest Airlines, American Airlines,
  SPIRIT, SWA, LUFTHANSA, and British Airways.

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Competition

• Our competitors are Orbitz.com, Travelocity,
  Expedia.com, Priceline.com, etc. Some of these
  companies have been in this business from past
  10-20 years.
• Price/Strategy We will be selling discount
  tickets online rather in person.
• Product/Service Features We provide same day
  travel in the last 4 to 6 hours before departure
  on any major airline with prices up to 50 off.

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Competition Contd.

• Market is highly competitive.
• The strengths that our business plan carries are
  the major discount and last minute flying, which
  is our unique product. If we look at the
  weaknesses there are none. Theres no other
  market out there which provides a last minute
  flying. This is why our plan is so unique to
  compete in the market out there.

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Environment

• There are some important economic factors that
  will affect our product and service as follows
• If energy price rise it will affect the business.
• If taxes rise up it will affect the business.
• If certain airline files bankruptcy it will
  effect the business.
• Legal Factor that will affect the market
• Federal, State, and Local regulations for travel
  agencies.
• Obtain a sales tax license from State of Michigan.

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Environment Contd.

• Security is another legal factor that will affect
  our market such as
• Flights are cancelled due to terrorism.
• Major security issue for example unattended
  baggage or box.
• Government factors Too many government
  restrictions can discourage people to fly. For
  example
• No Liquid allowed.
• No Sharp items allowed.
• Long Lines through security check.
• Removing certain clothing.
• Multi Screening of Baggage or Suitcase.
• Each traveler will be limited to one carry-on bag
  and one personal bag (i.e., purse or briefcase).
  

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Environment Contd.

• Environmental Factors we have absolutely no
  control over environmental factors for example
• Bad weather will delay the flights.
• High security alert will delay or cancel the
  flights.
• Major airline accident will delay the flights.

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Product or Service Analysis

• Description We are selling airline tickets
  online. The service that we are providing is
  convenience and the ability of the customer to
  make a last minute reservation on any major
  airline with the opportunity to save money on
  regular prices.
• Comparison Ease of use and convenience. We
  appeal to the procrastinator by making it
  possible to save money without advance
  reservations.
• Disadvantages Our policy is if cancellation
  occurs there will be no refund what so ever
  unless a security issue occurs.

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Marketing Strategies/Market Mix

• Image Company will have cheap but convenient,
  good quality service, and excellent customer
  service. It is very important for a business to
  have a good image out there in order for them to
  grow. Good Customer service is always a top
  priority and customer satisfaction.
• Features The features our company will emphasize
  are cost savings, convenience, and quality.
• Pricing We will be using a following pricing
  strategy
• Competitive (we will be competitive with major
  online companies like Travelocity and Expedia in
  there pricing of online tickets).
• Below competition (in our Fly Right Now feature
  we will have prices well below the competition).

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Marketing Mix Contd.

• Customer Service We will provide 24 hours ticket
  purchasing and 24 hours tech support.
• Sales/Credit Terms All sales are final and no
  credit unless security issues.
• Competition Our Company specializes in last
  minute traveling. The Customer can book a ticket
  in advance or book a ticket just several hours
  before the flight departs and still save up to
  50 of the original price.

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Advertising

• Stay Competitive
• The competition offers
• Deals by Email
• Deals by RSS feed
• Fare alert features
• Travel alert (weather up dates)
• Business and Corporate travel features
• Additional customer service features (FAQ)
• We want to add these same features to our site to
  stay in the game

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Advertising/Promotions

• Start with a low cost approach
• Internet
• Billboards
• Radio
• Yellow Pages
• Television Ads for national and international
  markets

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Technology Plan
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Hardware

• Dell 2950 PowerEdge Server
• OS Linux
• Processor 2 Intel Xeon(s)
• Ram 1 GB (Fully Buffered)
• Hard Drive 2x73 GB SAS (RAID)
• Redundant Power/Cooling
• Bandwidth 150 GB Monthly
• Managed Backup 25 GB Weekly
• CISCO PIX 515 Firewall
• Novell Identity Manager
• T1 Connection

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Server, Hardware and OS Contd

• Web server software - The Web server software
  cost for our company estimated around 10,000.
• Computer hardware to host the web site - The
  computer hardware total cost to host the web site
  estimated at 20,000. This is one time cost that
  we will have to spend on the computer hardware.
• IT Operating System - The cost of operating the
  software for the server estimated at 300 - 500
  to start and in order to upgrade we will have to
  spend additional around 300 every 12 months.

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Software

• Web site software The website software for the
  creation and maintenance of the website cost
  estimated at 500.00 to start.
• Cost breakdown are as follows
• 400.00 for the creation software
• 100.00 for the maintenance per month.

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Software Contd

• The software necessary for the analysis of
  website performance
• Estimated costs 200 per year for the analysis of
  traffic and links among web pages.
• Security software and hardware for the Web site
• 200 per year for firewall software
• 100 per year for antivirus software,
• 2000 per year for physical security of the
  server and its components.

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Setup

• Web site design and setup costs
• costs of hiring two programmers/web development
  specialists
• Estimated costs of 40,000 per individual.
  Therefore 80,000 total costs.
• Initial Web page layouts
• Includes custom graphics, photographs, line art,
  audio, and video elements.

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Fees

• Domain name fees
• The domain name registration fee and web hosting
  will cost 50 with 5 year contract.
• Development of search engine keywords
• Search engine keywords to direct customers to the
  company website
• 219 with a one year subscription or 25 per
  week.

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Search engines registration fees

• The hard costs of search engine registration and
  directories depending on how many pages to
  register would range from
• 800 - 1600 per year.
• For example
• Yahoo! Directory-- Recurring yearly fee to be in
  the Yahoo! Directory is 300.
• Lycos - 50.00 minimum charge with recurring
  monthly charges. (Pay-Per-Click through).

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Maintenance

• The estimate of maintenance which includes
  creating new web pages, updating existing pages
  cost
• 250-300 monthly or 3000 - 5000 yearly.
• Upgrade the hardware and software of the server
  cost
• range from 5000 - 10,000 yearly
• The webpage analysis and upgrades will be done
  every six months. The software and hardware
  upgrades will be done once a year.

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Training and Communications

• The costs of training current and new staff broke
  down as follows
• The cost to train at least nine people
• fixed cost of 500 per person
• Communications link monthly costs
• T1 leased line
• The estimated costs 499

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Financial Plan
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Financial Plan

• Market Revenue/Share
• Income Statement
• Balance Sheet
• Surveyor Pro Cost
• Cost Baseline

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Market Revenue/Share

• Based on Hitwise Survey
• 10 million users use an online airline
  reservation to buy tickets
• With great advertisement efforts, we are
  confident that we will get 0.01 (customers) hits
  to our website (100,000 users a month)
• Then using success rate of about 5 of customers
  actually buying ticket from us (5,000 tickets
  sold/month)

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Market Revenue/Share Contd

• Sabre
• Who is the middleman between airline companies
  and travel agencies
• With size of our company quoted us approx. 30
  profit of each ticket sold
• So selling 5000 tickets/month will give us
  earning of 225,000/month

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Balance Sheet
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Contd Balance Sheet
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Contd Balance Sheet
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Income Statement
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Contd Income Statement
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Surveyor Pro Cost
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Cost Baseline
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Sample Page

• http//people.emich.edu/rcata/FlyNow/flynow.htm

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• Questions??