Sharp Teenager Recreation Center’s Business Plan Case Study

Executive Summary

Sharp Teen Center is a start-up business organization that will provide teens in Dubai with an opportunity for recreation, where they will meet, integrate, and enjoy recreational facilities. The cultural diversity in the city provides an advantage for teens to learn from different cultural backgrounds, especially in terms of music, drama, arts, beauty contests, and other kinds of services. Sharp Teen Center will operate as a teen club, with new members having to meet some registration expenses and criteria set by the management. The facility will be operated as a club, with teen members having the opportunity to suggest the programs of their choice, and the management being the final decision-making organ.

Mission

1. To provide the teens in the greater Dubai area with an exciting, fun, entertaining, and educative facility, which will help them learn from cultural diversity and develop an appreciation of the culture in Dubai.
2. To develop a community development center that will focus on young people to allow them to integrate and build up a strong foundation for their career, which will be an added source of learning to the education they obtain from schools.

Objectives

1. Attracting 15% of the teens in Dubai by branding and marketing the ‘Sharp Teens Center and Club’ as a new product in the city.
2. Increase teenager enrolment by 12% by the end of the second year of operation
3. To gain a market share of 35% by the end of the third year of operation
4. To increase profitability by 20% per annum

Company Summary

Sharp Teens Center is a start-up business that will be operated as a partnership between Dick Marcus and Ali Hassan. The club will offer a series of teen activities to provide the community with an opportunity for entertainment, learning, and recreation. Besides, it will increase appreciation of cultural diversity, while also promoting cultural integration among the young people in the city. The services will contribute to the social, emotional, and physical development of the teens, while also discovering, promoting, and nurturing individual talents.

Dick Marcus is a psychologist and researcher in human psychology at the University of Abu Dhabi. He is an Australian citizen who relocated to the UAE to take up teaching at the university. He brings in advanced knowledge in teen psychology, which will promote the services to be provided at the center. Ali Hassan is a leading entrepreneur in Dubai other than being a child psychologist. He has been working as a psychiatrist for the last nine years, from which he obtained knowledge in the potentials of the Dubai tees and the social and psychological problems they face.

Potential customers

In Dubai, young people between the age of 11 and 19 make up at least 18% of the total population. The majority of these are foreigners or children born to immigrants, mainly from Asia, Europe, and the Far East. This means that cultural diversity is relatively high. Also, the majority are students in high schools and early years in the university, which means that they can find time to join the club during their holidays, weekends, and evenings after school. The company will therefore target this group as the potential customers.

Market opportunity

Dubai has a large population of the working class, with most people employed in the business and tourism sectors, which have been the major economic activities in the city over the last three decades. The city’s population is approximately 1.4 million people, with the majority of the adult population being workers and business people. This means that their potential to pay for recreation services for their children is relatively high, especially because parents are normally away at work, leaving the children in their homes or at school. The company will take the advantage of this situation to attract these parents and convince them to enroll their children at the club.

Secondly, the population of young people is rising with the rise in the general population in the city. The overall population growth rate is estimated at 3%. This indicates that the population of young people will rise significantly in the next few years. Also, it provides an opportunity for the Sharp Teens Center to expand its services and programs to accommodate more members and increase profitability.

Local context

Sharp Teens Center will base its services on the cultural aspects of the Dubai community. First, Islamic culture will be the main factor determining the kind of services to be provided and the target group. In this case, music, dance, arts, video, girls’ center, games, and sports services must conform to Islamic laws and regulations.

Secondly, the type of music, dance, and sports programs offered at the club will be based on the cultural diversity in the city. It will include the preferences of all the groups, including the Asians, westerners, Africans, and the local communities. Teens will be offered an opportunity to learn about different cultures, their music, arts, and sports and engage them in accepting cultural diversity. This is likely to ensure that the program of activities at the center does not rely on the culture of one group, but rather it represents the cultural diversity in Dubai.

Innovation

To improve its competitiveness, Sharp Teens Center will identify the state of an art business setting, with modern music, arts, sporting and game facilities, employees, and teachers to ensure that it beats off the potential competitors with innovativeness. Besides, the company will come with a program that will provide similar services to the physically and mentally challenged teens to ensure that they are not locked out of the overall opportunities presented by the club. Specifically, few organizations are providing recreational opportunities to these groups of teens, which means that our innovativeness will attract parents to enroll their physically and mentally challenged children to the club.

Financial issues

Dubai is the most expensive city in the UAE and the 20^th most expensive urban area in the world. This phenomenon means that the company must gather enough capital to provide the facilities in the club. Secondly, it will affect the pricing strategy because customers must meet the expenses and the company must achieve its level of profitability. Thirdly, there is a price competition with companies providing similar services. Although there is no company of this type, hotels, children centers and other organizations provide some services similar to some that will be provided at Sharp Teens Center. They offer competitive prices, which calls for a pilot study to determine the best pricing strategy to be employed at the club.