Background information
Tim Lingo is an IB graduate from United IB school (UIBS) India. Furthermore, he received his undergraduate degree from United Technology College (UTC) and majored in computer programming and design. He started his career as a software developer and mobile app designer at Tech Pro Designs, a private limited company. In recognition of his excellent performance and dedication, Tim was given a new responsibility as head of mobile app design and development. During his tenure with Tech Pro Designs, he has demonstrated all IB learner profiles. He was a very good communicator and organiser. His qualities, work culture, and leadership styles brought him much appreciation from his colleagues, as well we as Tech Pro Designs’
New venture
Though Tim was happy at Tech Pro, he sometimes felt there was a lack of scope for creativity and no freedom in terms of design and development of apps. He found working for other firms frustrating and decided to establish his own firm, Apps2u with his college friend David. Apps2u is a partnership firm where Tim contributed 80 per cent of the capital and the rest is from David. A2u develops fun and educational games for mobile phones.
Professional responsibilities
Tim is in charge of the core business of A2u, that is mobile game design and development, whereas David managed marketing and finance. However, the accounting function is outsourced to a specialist firm that prepares monthly and annual accounting statements for A2u. They also hired two fresh tech graduates, Willy and Kelly through a private employment agency. Tech graduates work directly under the supervision and mentoring of Tim. Once a month, Tim conducts a special mentoring session for Willy and Kelly, highlighting trends in the app market and emerging technology. Tim, Willy and Kelly also update their knowledge through online courses from Learn Tech Academy.
Business growth
Both Tim and David saw potential in the emerging e-commerce industry in India. Now A2u has gone far beyond games and started developing desktop and mobile phone apps for schools and colleges, tours and travel agencies, app-based payment solutions, and apps for small traders. They also hired an agency to conduct both primary and secondary research to understand the market and trends in the e-commerce industry in India. The major results from the research agency are:
- E-commerce market is growing at the rate of 12 % per annuum.
- Simple procedures regarding business registration, GST, etc., for small traders.
- Education industry is moving towards paperless. School and college admissions have moved online.
- A few popular competitive examination boards are going online.
- The Indian government has been spending more than the usual amount on improving infrastructure to attract foreign tourists.
- The younger generation is in favour of booking travel using apps.
- Apps2u is brand new in the in the business world.
- There are plenty of freelance app developers who charge really competitive prices.
- Even roadside petty shops (snacks, fruits, and vegetables sellers) have started accepting payments using mobile phone-based apps.
Marketing strategies
Currently, Apps2u does not have very formal sales promotion methods. However, A2u uses YouTube, Facebook, and Google AdSense to sell their products. David feels large scale advertising is a must for business growth. App demos at educational and travel fairs, teacher training/workshop sessions might work well. But this requires additional funds and manpower. Tim has accepted the ideas and is also thinking about advertising through print media like education, tours and travels journals.
Challenges and opportunities
Sales revenue has been increasing steadily and A2u could achieve break even. However, due to limited manpower in A2u, Tim and his team are not in a position to meet project deadlines. Sometimes the clients complain about this delay. However, they have appreciated the quality of work and post sales service. Tim and David think they should hire more software developing employees. But the current office is too small to accommodate more employees. They are thinking about two options: move to a new and bigger office away from the city centre or ask new employees work from home and visit the office personally twice a week to discuss the project.
Work culture
A2u follows a simple organisational structure, wherein Tim holds the highest decision-making power. However, David’s views are considered equally. Tim is flexible, Willy and Kelly are given complete freedom in terms of working hours, holiday, dress code, etc. But Tim is strict about meeting deadlines. Still, some projects take more time than as planned. Whenever A2u signs up for a new project, Tim and David discuss it with Kelly and Willy. Then, they are asked to draw up an action plan /timeline in the form of a Gantt chart. Tim always insists on accuracy in the action plan, so that clients are given the exact project delivery dates. In some cases, A2u also holds video conferences with the clients to understand the requirements better.
Corporate Social Responsibilities (CSR)
Tim always believes in charity when A2u developed software for public libraries. He also creates awareness among school children regarding the pros and cons of using mobile/computer games. He conducts awareness campaigns for school children with two objectives in mind: social marketing and A2u’s brand awareness. When he interacts with IB students, he also shares his IB learning experience. A2u also allows the high school students to do part-time internships where the selected students learn various aspects of business, like marketing, finance, HR and operations.
Finance
Appendix 1 gives a summary of A2u’s financial position. Currently, A2u’s clients are mostly based in India. The price of mobile phone game varies between INR 15,000 to INR 35,000 (USD 1 = INR 74) which includes one year of free maintenance and technical support. Reputed institutional clients are given 60 day credit whereas individual customers have the option to pay 50 per cent at the time of delivery and the balance within 30 days.
Future plans
Though A2u achieved break even in the previous year, Tim and David are not very happy with the progress of A2u. Tim hired a consultant to review the original business plan. The new plan includes the following:
- Updated mission statement for A2u is to develop and deliver technology which meets clients’ requirements – The Client is First.
- Increase the sales revenue by 12 per cent in two years time. The current sales revenue is given in Appendix 1.
- Promotional budget has to be increased by 8 per cent per annum.
- Live demo at schools and colleges.
- Demo booths at school/college promo events.
- Access to more finance, either by taking more partners or converting partnership to a private limited company.
Tim and David are serious about the implementation of growth options included in the newly written business plan. But Tim is worried about maintaining A2u’s core values. David thinks that business growth is more important than core values as the future of the e-commerce industry in India is not as bright as projected and bigger firms might declare a price war for their survival.
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