CORPORATE FINANCE REPORT ON PROJECT: SPORTS SCHOOL
Sun Valley School of Sports You don’t win Silver - You lose Gold
Submitted to- Prof. Vikas Srivastava Submitted By- Group 4 Pgpbf (2009-2011) Abhishek Sharma , Ajitav Sinha , Akhil Goyal, Mohit Choudhary, Priyanka Ojha, Sneha Jaiswal , V.Vinitha PGPBF, NIBM Pune
Executive Summary Project
–
SUN VALLEY is an exclusive SPORTS SCHOOL with the objective of ‘catching them young’ and bringing GOLD for India in the Olympics of 2020. The school will be located in a 60 acre campus in Vikhroli village in Pune. The school will be fully residential and coed. The school will have classes from standard III to standard XII. The school will coach the students in weight lifting, swimming, shooting, judo, cycling, boxing and athletics. For the academic program, the school will adopt the curriculum of National Open School (NOS)
Cap Ex Investment
–
Initial investment of Rs. 34.85 crore with incremental of Rs. 0.64 crore in the third and fifth years each. Land is provided free of cost by the Government of Maharashtra
Demand & Capacity
–
Full capacity of 400 students per annum. First two years’ operation at 50% capacity and next two years 75%.Full capacity with effect from fifth year.
Capital Structure
–
56% owner’s equity and 44% bank loan (term loan) running for 5 years
Cost of Capital
–
11% with debt at 14% and equity at 10%
Revenue Stream
–
Fee of Rs. 2.5 lakh per student per annum for the initial two years and increased to Rs. 3.0 lakh from the third year onwards
Profit
–
Profit after Tax since third year of operation and accumulated losses wiped out in fifth year of operation
Break Even
–
17.5 years
Growth Rate
–
CAGR of 13% and approaching 7% in the long run
NPV
–
Rs. 15 crore
IRR
–
17%
Management Team
–
The management team comprises of 7 members who are the Promoters of the Company and 2 Independent Directors, one of 2
whom is a current Cabinet Minister and another is a retired IAS officer.
Index Contents 1. Introduction
•
Concept
•
Objective & Vision
•
Business Model 2. Market Study
•
Demand Projection
•
SWOT Analysis
•
Competitor Analysis
•
Marketing Mix 3. Technical Study
•
Costing
•
Steps for setting up a school 4. Financial Study
•
Financing Plan
•
Leverage
•
Cost of Capital
•
Break Even & Sensitivity Analysis
•
Projected Financial Statements
•
NPV & IRR calculation 5. Economic Study
•
General Macroeconomic condition
•
Porter’s Five-forces Model 6. Management Team
•
Details of Board
•
McKinsey’s 7S Framework
Page No. 5- 6
8– 10
12 – 17
19 -24
26 -28
30 –33
3
•
CSR
7. Snapshots with Layout
34- 36
Introduction
4
The Concept The system of sports school was founded in 1930s in the erstwhile USSR. Sports school is a type of educational institution that prepares young students for the highest achievements in the field of sports while also giving them the necessary academic proficiency for their future. One of the most powerful system of the present times in sports education is practiced in the People’s Republic of China. The success is for all to see – China has garnered 51 gold medals (highest) in the 2008 Beijing Olympics and most of them were from the students of such sports schools. In the year 1973 the Government of Haryana started the Motilal Nehru School of Sports, Rai with a prime objective to provide excellent education facilities with extra emphasis on sports to deserving students. However, the focus later shifted to academics and sports became mere exercise. The investment made by most States in sports has been negligible. In consequence, we have not succeeded in creating a national sports culture, thus also impairing excellence in sports. It is estimated that out of a population of adolescents and youth of some 77 crore, only 5 crore or so have any access to organized sports and games, to the neglect of nearly 72 crore of our children. The Parliament Standing Committee on Human Resource Development identified the lack of sports culture in the country and the non-integration of sports with the formal education system as the major problems behind India’s lacklustre performance in sports. Even a small country like Cuba, whose population of about 11.5 million is comparable to that of NCT Delhi, boasts approximately 2 million athletes, of whom 23,000 are in the high performance category in 38 different sports disciplines at the national and international level. With the sports culture permeating every aspect of Cuban society, national athletes are folk heroes and receive national recognition and lifetime financial support. Cuba spends about 13 per cent of its national budget on sports and related activities. The outcome in terms of excellence in sports is starkly measured by comparing the number of medals in absolute numbers and the number of medals per ten million of the population won by Cuba, China and India respectively at the most recent Olympics and Asian Games put together. Country Cuba: China: India:
No. of medals 179 379 55
Medals per 10 million pop. 157.2 2.8 0.5
5
Objective We plan to set up an exclusive SPORTS SCHOOL with the objective of ‘catching them young’ and bringing GOLD in the Olympics of 2020. The school is set up along the Russian & Chinese model of identifying sporting talent in children at a young age and nurturing them for representing the country at international level tournaments.
Vision Our vision is to create a world class infrastructure with state of the art sporting complex and top level coaches & supporting staff to nurture talents with an ultimate objective to stabilize India at the pinnacle of world Sports and help become a leading contender in Olympics.
Business Model The school will be set up as a private limited venture. The school will be located in a sprawling 60 acres campus in Vikhroli village that is 7 kms away from Hadapsar in Pune. The school will be fully residential and co-ed. In addition to state of the art training in sports, the school will offer academic programs to equip the upcoming sportsmen and women with requisite knowledge for their future. For the academic program, the school will adopt the curriculum of National Open School (NOS). The school will have classes from standard III to standard XII with two sections for each standard. Each section will have a maximum of 20 students. The maximum seats in the school will be 400. The admission of students will be on the basis of entrance test combined with talent scouting for inherent sporting talent. The school will coach the students in sports which have been selected based on the medal tally in Olympics viz. - weight lifting, swimming, shooting, judo, cycling, boxing and athletics. These games are competed at individual levels and contribute to 51% of total gold medals at stake in the Olympics.
6
MarKET STUDY
7
Demand Projection India has the largest student population in the world with over 13.5crore pupils in primary education. In the last five years, the government has been focusing on the Education Sector through increased fund allocations. In the current year also, the government has increased the allocation by 20% from Rs. 28,674 crore to Rs. 34,400 crore. The allocation is expected to continue to increase in the foreseeable future as well. The government has imposed an Education cess on income tax to fund its various programs, which target to improve the quality and reach of education in India. Student enrolments have grown at a good rate of 3.2% CAGR over 1999-2000 to 2004-05 for primary enrolments, and 3.9% for upper primary enrolments. With increase in per-capita income there is a greater propensity to educate children at premier institutions. The parents whose children are studying at these schools expect a higher standard of education and have comparatively higher expectations from these schools in terms of infrastructure, facilities and courseware. For example, 50% of parents spending close to Rs. 3 - 4 lakh per year to educate their children at Doon School, Dehra Dun own medium sized business and come from small towns like Moradabad, Panipat, Yamuna Nagar etc. Formal schooling, globally known as K12 (Kindergarten to 12th grade) is India’s core education market and occupies the largest space in the education system, growing at 14% CAGR. As for India’s middle class households, we believe this segment of society would continue to spend a large part of its income to fund the education (with an eye on quality) of its children. Overall, we believe Budget allocations and high spending by the Indian middle class on education are expected to fuel growth of private schools in India. 40% of the school going children attend private schools, which are approx 7% of the total number of schools in the country. This indicates a clear preference for private schooling over public education system. The quality of education in private schooling is better despite the higher costs. There are over 75,000 private schools with investment of over US$20billion. The growth of private schools is fast because of the absence of quality public schools. A growing awareness about the importance of quality education and increasing ability and willingness of Indians to pay for good education is driving private sector education forward.
8
SWOT Analysis Strengths : Specialisation in sports
Weaknesses: Sports education concept
a
new
Focus on Olympics
is
A head coach for each game
Few specialised available
coaches
Opportunities: Threats: Increased coverage & penetration of sports In India people are Academic centric. Success of Indians in Beijing Olympics has raised hopes and demand for more Competition is with Sports sportsmen & women Authority of India, Sports schools by Govt. Competitor Analysis The competition will be from existing premier residential schools like Doon School of Dehra Dun, Lovedale School of Ooty, Boarding Schools of Darjeeling & Shimla as well as Sports Schools set up by the State Governments. Though the infrastructure, ambience and facilities are compatible with the former, their focus is academics while ours is Sports. Comparing with govt. run sports schools, our infrastructure, coaching and exposure is much higher. The annual fee structure of Rs 2.5-3 lakh is placed lower than the premier schools (with fee ranging from Rs 5-6 lakh) but higher than the govt. run sports schools (fee ranging from Rs 0.5-1.5 lakh) Marketing Mix Product: In this project we are basically selling the concept and not just the school. In India, sports is considered as a leisure activity or the means to land a job through sports quota. Besides, apart from cricket no other sport activity is encouraged. We plan to sell the concept of winning GOLD for the country. The highlight would be state-of-the-art coaching for students who have an inherent talent for sporting activities along with quality academic knowledge. Price:
Proposed School Fees- Rs 2.5 lakh per annum for the initial two years, which will be hiked to Rs 3.0 lakh per annum from the third year. We plan to seek active corporate sponsorship in terms of scholarships in various sports activities/ exchange programs and international expertise.
9
Place:
We are targeting students at pan-India level. Talent scouts would visit schools’ sports meets and camps to identify potential candidates.
Promotion: For the promotion of the school following strategies will be adopted•
The communication about the school will be made through pamphlet distribution, advertisement on TV, in magazines, newspapers and hoardings in a particular niche area. The advertisement campaign will run all over the country.
•
We are also planning for a campaign in the up-coming Commonwealth Games and London Olympics in 2012 and other national and international level sports championship.
•
We plan to rope in Olympians like Abhinav Bindra & Vijender Singh as brand ambassadors for helping us in the promotion of the school.
10
TECHNICAL STUDY
11
For the first year of operations, the school will be operating at 50% capacity as students up to standard VII only will be enrolled. There will be proportionate capacity addition as number of students increase
Costing Rs in Crore 30.00 0.50 1.00 0.40 0.20 0.18 2.57 34.85
Cost of Project Building Construction Furniture & Fixtures Athletic Arena/ Track Sports Equipment Vehicles Computer & Equipment Preliminary Expenses
Sports Equipments No
Game
Batch Size Cost in USD
1
Wrestling
10
1669.50
2
Swimming
20
1712.19
3
Shooting
10
5001.13
4
Judo
10
839.60
5
Cycling
20
18825.80
6
Boxing
10
1085.04
7
Athletics
100
33114.38
Total
62247.64
Exchange rate
47.5
Amount in Rs crore
0.30
Dress & Replacements Rs in crore
0.10
Total Amt Rs in Crore
0.40
per student Rs. 5000 p.a
12
Manpower Description S. no. 1
Particulars Head Coach Asst Coach gym instructor dietician doctor nurse visiting physician physiotherapist counsellor Teachers TOTAL
2 3 4 5 6 7 8 9 10
No 10 * 7# 1 1 1 1 1 1 1 10
Per month
Total per month
25000 20000 20000 20000 25000 10000 4000 25000 20000 20000
250000 140000 20000 20000 25000 10000 4000 25000 20000 200000 714000
Annual Rs in Crore 11 12 13
Principal Vice Principal Support Staff TOTAL
0.86 1 2 12
35000 30000 10000
Amount Rs in Crore
35000 60000 120000 215000 0.26
*1 head coach each for 6 games & 4 for athletics #1 asst. coach each for 6 games & 1 for athletics
S. no. 1 2 3 4 5
Computer & Accessories Particulars price /unit unit required
total amount in Rs
Computer
30000
55*
1650000
Printer Projector White Board MFD TOTAL Rs in Crore
3000 5000 3000 15000
20 10 10 1
60000 50000 30000 15000 0.18
*one for 2 students-one for each teacher-one for each class-15 office one for 4 teachers-2 in lab(2 for 20 students)-1 each fr princi, VCs-12 office staff.
13
Outsourced Activities
Rs in Crore
Scope
Food & Refreshments
1.50
As per diet chart for each student( Rs. 250 per person per day)
Security
0.12
Round the clock security
Repair & Maintenance
0.12
Repair & Maintain electrical & plumbing fittings, vehicle, sports equipments
Housekeeping
0.24
Cleaning, Gardening, Aesthetic Management,
Vehicle Particulars Tata Motors School Bus Tata Motors School small van Tata Indica Amount Rs. in crores S no. 1 2 3 4 5 6 7 8
in Rs lakhs. 10.55 6.5 2.95 0.2
Preliminary Expenses Company Registration Fee Legal Advisory Charges CA charges Approvals for land & Building Misc Expenses Interest on loan for constuction period Promotion Expenses Approval & Affiliation for school Total in Rs.
50000 100000 100000 25000 350000 15000000 10000000 25000 25650000
Amount Rs in Crore
2.57
Amortised over 10 years @ Rs. 0.26 crore each year
14
1 2 3 4 5 6 7 8 9 10 11 12
Furniture and Fixtures price Particulars /unit class room desk & table 1000 bed+mattreses+pillow 6000 study table 3000 mess table + chair 4000 teachers table+chair 2500 Coaches & others table+chair 3000 principal's office 100000 VC's office 60000 Audi chairs 500 Dispensary Lockers & Cabinets TOTAL Total in Rs crores
unit required 200 200 200 50 10
total amount in Rs 200000 1200000 600000 200000 25000
20 1 2 300
60000 100000 120000 150000 1300000 1000000 4955000 0.50
15
16
Cost of Construction: 1 School Building Plinth Area Electrical Plumbing and water supply Central A.C.
sq. feet 10000 0 10000 0 10000 0 10000 0
Rs per sq. Feet
(in crores)
1000
10.00
40
0.40
30
0.30
50
0.50
40000 40000 40000 40000
1000 50 50 75
4.00 0.20 0.20 0.30
40000 40000 40000 40000
1000 50 50 75
4.00 0.20 0.20 0.30
20000 20000 20000 20000
1000 50 50 100
2.00 0.10 0.10 0.20
10000 10000
800 100
0.80 0.10
2 Girls Hostel Plinth Area Electrical Plumbing and water supply Central A.C. 3 Boys Hostel Plinth Area Electrical Plumbing and water supply Central A.C. 4 Staff Quarters Plinth Area Electrical Plumbing and water supply Central A.C. 5 INDOOR STADIUM & AUDITORIUM Plinth Area Electrical & Furniture 6 7 8 9 10 11 12 13
Football Ground Basketball ground Canteen building Swimming pool Repairs & maintenance room Watchman's cabin Landscaping & Decorating Compound wall + gate + roads Total
0.60 0.40 0.20 0.78 0.10 0.02 3.00 1.00 30.00 17
Rules and Regulations for Starting a school
in Pune :
The players in starting a new school are: Government agencies: • Registrar of societies • Charity commissioners’ office • Zilla Parishad • Pune Municipal Corporation (P.M.C.) Actual Procedure for starting a school: Step 1: Applications for starting a new school should be submitted to Zilla Parishad Step 2: The Zilla Committee reviews the application and then it is sent to the Mantralaya. The Mantrakaya has the final say to accept or reject the application based on the reports sent by Zilla Parishad. The entire process requires 6 months. Step 3: Register the school as a trust according to the Societies Registration Act, 1860 and Bombay Public Trust Act, 1950. Step 4: Apply for recognition to the Zilla Parishad or PMC. Step 5: Obtain a temporary licence for the school. Step 6: Affliation to National Open school certificate.
18
FINANCIAL STUDY
19
FINANCIAL PLAN & ITS REASONS: (Rs in Crore)
Initial
Equity capital Term loan Special Incentive from Govt. Loan from friends & Relatives TOTAL
18.00 15.36 1.49
Subsequent Increment 2.50 3.00 2.50
34.85
•
Newly formulated company so the proportion of owner’s equity is higher;
•
Long term debt for covering approx 60% of construction has been raised. This would account for the “discipline of debt”;
•
Govt subsidies to promote sports culture in the country providing interest free capital
•
To plug in deficit financing, we propose to raise interest free additional finance from friends & relatives;
•
Since there is no working capital gap, we are not raising any finance for working capital;
•
Internal accruals from fifth year onwards would be sufficient to meet the operating expenses;
•
The promoters would not receive any remuneration or dividends, till 5th year. Henceforth, we propose to declare dividends @ 20% of PAT.
DSCR and Interest Coverage Calculation Particulars EBIT
I 0.51
II 0.58
III 2.90
IV 2.94
V 4.32
PAT
-1.82
-1.34
0.99
1.31
2.58
1.72
Depreciation
1.18
1.11
1.12
1.08
1.06
5.54
Interest
2.08
1.67
1.24
0.81
0.38
6.16
Amortisation Exp
0.26
0.26
0.26
0.26
0.26
1.29
Cash Accruals
1.69
1.69
3.60
3.46
4.27
14.71
Interest
2.07
1.66
1.23
0.80
0.38
6.15
Installment
2.30
3.07
3.07
3.07
3.07
14.59
Payments
4.37
4.73
4.31
3.88
3.45
20.74
0.39*
0.36*
0.84*
0.89*
1.24
DSCR
Total
20
ICR
0.25*
0.35*
2.35*
3.64
11.45
* The deficit made good by capital infusion
21
COST OF CAPITAL:To arrive at the cost of capital, we used WACC methodology. It includes cost of debt and cost of equity. To get the cost of debt, we considered a term loan charging an interest rate of 14% p.a. In this we take into consideration the tax effect. The effective cost of debt comes out to be 14(1-0.3); =9.8% To get the cost of equity, we used the CAPM approach, according to which,
ke =Rf + β(RmRf) where: ke=cost of equity Rf= Risk free rate ; considered 7% as per average Treasury-bonds discount rate. β = Coefficient of systematic risk Rm= Market returns of NSE for the period Sept 2008 to Aug 2009.
•
Beta value was calculated using the fundamental approach
•
Here the historical beta we are considering is of “Bhagwati Banquets and Hotels Ltd.” a comparable hospitality industry firm.
•
We calculated the historical beta by regressing their returns against NSE returns. This was the levered beta of the firm which we unlevered and again re-levered using our capital structure.
22
Relevering the historical beta:
βrelevered = βunlevered [1+ (1-t)(D/E)target] The beta for our firm came out to be 0.69 and we adjusted it for our new venture to a more realistic value of 0.80 After arriving at the cost of debt and cost of equity, we used the WACC method, ko = kd(D/D+E) +ke(E/D+E) The weights of debt and equity is taken from the balance sheet. Debt is 15.36 cr whereas equity is 20.5 cr. The overall cost of capital comes out to be 10.77%
23
BREAK-EVEN ANALYSIS: Key assumptions made for the break-even analysis are : •
We have used Free Cash Flows to the Firm(FCFF) for arriving at a break-even.
•
FCFF is calculated as FCFF=PAT+INTEREST (1-TAX) +DEPRECIATION
•
PAT is taken as at the end of 3rd year as it is the 1st positive one we are getting.
•
Interest is added back as we are considering break-even for both the debt and equity holders.
•
As already mentioned in the economic analysis, we are assuming the growth rate(g) of 13% which is on the lower side of the expected growth of 15-17%.
•
The discount ratebove equation is taken as the cost of capital (k) calculated earlier.
CALCULATION METHODOLOGY: Initial CAPEX = FCFF [1+(1+g)/(1+k) + ((1+g)/(1+k))2 +………+((1+g)/(1+k))n] where n is the number of years for break-even. Solving the above equation as a summation of GP having common ratio (1+g)/(1+k), the value of n came out to be 14.58 years. The particular point in this calculation is that we need to add 3 years to the B-E calculated as it was taken at the end of first 3 years. Thus, the B-E for our project comes out to be 17.58 years.
24
SENSITIVITY ANALYSIS: Scenario 1: Number of students remains same=300, fee varies. FEE
-20%
-10%
BASE=3lacs +10%
+20%
REVENUE
7.2
8.1
9
9.9
10.8
VC
2.58
2.58
2.58
2.58
2.58
CONTRIBUTION 4.62
5.52
6.42
7.32
8.22
FC
2.4
2.4
2.4
2.4
2.4
PROFIT
2.22
3.12
4.02
4.92
5.82
VARIATION
Scenario 2: Number of students vary, so does variable cost, fee remains same=3 lacs Variable costs= Total Cost-(Salaries +Repairs & Maintenance .+Security+ Housekeeping +wages & salary) = 4.98-2.4 Total VC for 300 students
=2.58 crore
Thus VC per student = 0.0086 crore
25
STUDENT
-20%
-10%
VARIATION
BASE=300
+10%
+20%
students
REVENUE
7.2
8.1
9
9.9
10.8
VC
2.064
2.322
2.58
2.838
3.096
CONTRIBUTION 5.136
5.778
6.42
7.062
7.704
FC
2.4
2.4
2.4
2.4
2.4
PROFIT
2.736
3.378
4.02
4.662
5.304
Analysis: As observed from the above graph, the slope of the fee variance curve is more than that of student variance. Thus the profit is more sensitive to fee changes than the change in number of students.
26
ECONOMIC STUDY 27
General Macroeconomic Framework Recent performance: The Indian economy confronted one of the severest external shocks in 2008-09 in the form of an intense global financial crisis coupled with a global recession, but exhibited notable resilience, with GDP growth at 6.7% in the year 2008-09. GDP growth of second quarter of 2009-10 surprised on the upside growing at 7.9%. Growth had slowed to 7.4% for 2008 and is expected to remain below trend over the next few quarters. Second quarter expansion came on the back of high government spending and a stronger performance in the manufacturing sector. Outlook: Growth will slide to 6.6% in CY-2010, while the medium term outlook remains favorable. The move towards gradual liberalization and deregulation will continue under the new government; but a major overhaul is unlikely in terms of FDI in education sector. As per IMF‘s outlook, medium term growth will return to 7-8% for India but not before 2011. The adverse impact of the deficient monsoon on food prices and inflation expectations suggest upside risks to inflation. RBI has revised its inflation projection upwards from the earlier 4% to 5%. With inflation posing a threat to growth and high forex inflows, as a response interest rates are expected to harden in the future.
Education Sector Our economy’s growth, development and ability to handle global competition is all dependent on the availability, reliability and quality of the education offered to its ‘leaders of the future’. As per the Indian Education Survey Report-2009, K12 market is expected to grow at 14% CAGR. We are assuming 13% growth rate for our school considering the novel concept and the growth os sports industry in India. The long term growth rate would approach that of the economy at 7%. The higher offtake of education loans, pay commission rewards & recent settlement in case of PSBs are expected to drive demand. The private consumption has already increased from 1.6% to 5.6% on year-on-year basis.
28
Industry Analysis using Porter’s Five-forces Model A classic business tool and probably the mostly widely used framework for strategic industry analysis is commonly known as Porter’s Five Forces with five controlling economic processes: •
Degree of industry rivalry and competitive intensity
•
Barriers to entry into the industry
•
Threats of available product or service substitutes
•
Degree of buyer power to negotiate
•
Degree of supplier power to negotiate
Degree of Industry Rivalry Assessment The education industry has a high fixed cost ratio and the premier school market is effectively concentrated, which makes competitive rivalry predictably high. To some extent, the benefits of being a growth industry offset the high degree of rivalry. Overall rivalry is mitigated because several schools have large capacity enrollments, and are content seeing premier schools satisfy growing demand by targeting niche markets. An overall competitive rivalry assessment is moderate. Barriers to Entry/ Exit Residential schools are usually very large organizations with extensive administrative operations, pervasive facilities and grounds, invaluable brands and a alumni base that can have a legacy well over a hundred years old. These characteristics, the capital and endowments required to support these long-term assets, including land grant entitlements, almost per se define large economies of scale, which certainly represent formidable barriers to entry. Probably one of the most controversial barriers to entry into specific areas of higher education is the requirements and restrictions imposed by accrediting associations. General assessment shows that in a school there is no exit barrier as such especially in private schools, but here a government aid is involved so the exit barrier in this case will be higher. Threat of Product or Service Substitution Assessment There are an estimated 1.07 million schools and that quantity alone would arguably indicate a wide variety of education options. Price points widely differ between the public and private education segments. Since private schools are perceived as high in quality relative to government 29
schools, the student is already price conditioned which makes transferring to a more expensive private school a realistic option. Degree of Buyer Power Assessment Buyers are widely fragmented across the market and in general, these potential students have limited influence on the higher education industry. The role of freely available and instantaneous information relating to course descriptions, college amenities, and school rankings most certainly shifts the information asymmetries giving potential students more power of choice. This shift, to a degree, offsets the effect of market fragmentation and consequently gives buyer power an overall neutral assessment. Degree of Supplier Power Assessment Schools and colleges frequently represent large stable contracts to vendors, so the ensuing competition for bids among these vendors is typically frenzied. Within the education industry, there are numerous suppliers of a variety of products and services, fragmented across the industry. An overall supplier power assessment is low.
30
MANAGEMENT TEAM
31
MANAGEMENT TEAM: The management team comprises of a Board, which consists of 7 members who are the Promoters of the Company and 2 independent Directors. The members are zealous and passionate to pursue the organizational objectives. Brief profile of the Directors is as below: Name of Director
Qualification
Specialisation
Networth (in Rs Crore)
Dr V Vinitha
MCA, Ph. D.
Educationist
30
Mr Abhishek Sharma
BE (IT), MBA
Finance
25
Mr Akhil Goyal
M. Tech
IT
20
Mr Mohit Chaudhary
B. Tech, Eminent Sports
20
sports personality Ms Priyanka Ojha
MBA
Public
Relations
& 25
Marketing Ms Sneha Jaiswal
MBA
Administration
Mr Jairam Ramesh
Politician,
Independent Director
20
Economist Mr Harnam Singh
(Retd
IAS, Independent Director
Maharashtra Cadre) Mr Ajitav Sinha
BA (Eco), Reputed Sports
30
Coach
32
McKinsey’s 7-S framework: McKinsey & Co's 7S framework provides a useful framework for analyzing the strategic attributes of our organisation. Strategy, structure and systems can be considered as the "hardware" of success whilst style, staff, skills and shared values can be seen as the "software". Companies, in which these soft elements are present, are usually more successful at the implementation of strategy. There is no particular order to the 7Ss.
Each of the 7Ss is elaborated on below: Shared Values Shared values imply that all our employees share the same guiding values. Ours being an organization for a national cause, we give high importance to values. We believe that each child has inherent potential to achieve glory and plan to channelise their talent to secure a bright future for them in Sports. The students are selected purely on merit and are nurtured in an environment that promotes team spirit and working for a higher-than-self goal.
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Strategy The integrated vision and direction of the company, as well as the manner in which it is derived, articulates, communicates and implements that vision and direction. We will formulate a strategy and devise time bound tactics to achieve our main objective. To reiterate a few, we wish to provide facilities akin to those available in developed nations. We would adopt China model to groom as many talents as possible and then segregate between “winners and potential winners”. Structure The policies and procedures which govern the way in which the organisation acts within itself and within the domain of its environment are also of utmost importance. There is a well defined structure in our organization. The top management consist of the Directors. Reporting to them would be the principal who would manage the different sports instructors and teachers. Assisting in his job would be two VPs, each being responsible for Academics & Administration and Sports. The hostel supervisor will also report to the Vice-Principal (A&A). There would be proper synergy among all the tiers of management for achieving our goals. Systems The decision making systems within the organisation can range from management intuition, to structured computer systems to complex expert systems and artificial intelligence. The school operates on an ERP package that integrates all the operations and keeps track of each student’s activities and schedule, including training, tuition, diet, etc. The school adopts the OnDemand Examination system for academics. We would be adopting a technology that would help us to keep a track of the individual development as well as structure our housekeeping in an efficient way. Style Style refers to the employees shared and common way of thinking and behaving - unwritten norms of behaviour and thought: • Leadership Style: We believe in a democratic set up, where every individual would have a platform to voice their concerns/ suggestions. Top management would basically be facilitator and communicate with the Board on all issues of importance • Organizational Culture describes the psychology, attitudes, experiences, beliefs and values (personal and cultural values) of an organization. It has been defined as "the specific collection of 34
values and norms that are shared by people and groups in an organization and that control the way we interact with each other and with stakeholders outside the organization." Skills Skills refer to the fact that employees have the necessary skills to carry out the organisation's strategy. The school plans to have a tie up with reputed clubs in corresponding sports – at both national and international level to keep the trainers and students abreast with the latest methodologies in sports training. We plan to invite the top ranked sportsman/woman and their coach to the school for an annual honorary camp to help the students and trainers to gain from their experience and strategies. We also plan to conduct inter school competition in different sporting faculties to hone the skill of students and expose them at a wider platform for mental toughness and psychological edge. Staff Staff is an asset and it highlights the importance of hiring capable people with adequate exposure at the highest level. There has to be a continuous training development programme for them and should be made to attend workshops, seminars, conducted by apex sporting bodies. Selection, training, reward and recognition, retention, motivation and assignment to appropriate work are all key issues. We employ specialised coaches for each sports and the ratio of students to trainer is 10:1. Our key area of focus is on providing support system to all the students on the individual basis.
Corporate Social Responsibility •
Sponsorship to meritorious students
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Special Camps for under-privileged children and possible sponsorship
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Green Buildings
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Solar Power & Rain Water Harvesting
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Sun Valley Sports School model:
Bird’s Eye View - Projection
Logo & Motto:
You Don’t win Silver, You lose Gold
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Uniforms:
School Uniform
Sports Uniform
Sports in Sun Valley:
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Sunvalley Infrastructure:
View of Academic Building Auditorium
Swimming Pool Athletic Track
School Bus
Cafeteria
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Class rooms Hostels
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