?Business assignment. Team members: Alp-Arslan Chovlukov, Eric Zhang, Eunji Jeong, Youjin Lee.
Kinderwereld” is caf? especially designed for kids to help them spend their time right and fun. We offer different kind of activities: movie time, book club, cooking classes, etc. Our place has a playground area, where children can play and give some free time to their parents.
The key feature of our place that we offer services like babysitting and birthday organization. Babysitting could help parents to empty their time schedule because our staff will take care of kids.
The most interesting activity our caf? can organize the birthday party because we can make it perfect and fun. We invite clown to entertain children, also every month “Kinderwereld will organize events dedicated to kids.
Kinderwereld” targets family groups with kids. It is about 4237 families in Amsterdam. Every parent wants their kids to be happy and spend their time wisely, hopefully, we can make it for them.
The activities that we organize could help children gain knowledge and improve themselves logically. Also, our place always happy to see kids, who don’t have parents, we can help them to feel themselves comfortable.
Location: Bijlmer Arena, Amsterdam Zuidoost
(Source: Funda, 2019)
We chose a building located in Bijlmer Arena’ for our business. It has enough space (290m^2) which makes children move freely and safely. The monthly rent is 4712,5 euros per month and it is an affordable price when all things considered. The arena is one of the most crowded places in Amsterdam.
It has a public transport stop where plenty of transportation including sprinter, intercity, bus, and metro assemble. Amsterdam Zuidoost has almost 84,567 inhabitants. Our caf? will be settled on the 1st floor of the building and it makes “Kinderwereld more accessible to customers.
Our second choice is Krijn Taconiskade 332 338 (Funda, 2019).
The conditions of rental price, size of the area was better than the final choice of the location, but the reason why we have not chosen is the problem of location. It is located in Haveneiland-Oost, which is quite far from the center of Amsterdam.
Legal structure: unlimited partnership
Kinderwereld use partnership agreement of setting up a business, below are the reasons why we choose this legal structure.
Easy to set up. Comparing to private and public limited companies we don’t need to go through the legal procedure, it consumes a large amount of time and also costs money.
Protection of data. No need to put our accounts on the public. Only tax authorities and our caf? know information and It is totally protected. Firm interest protected against any fraud. In PLC companies all data can be investigated by competitors for their advantage.
Division of responsibilities. Partners can manage the work and responsibilities they have. Comparing to sole entrepreneurship it is less stressful, also it might be difficult to have this type of cooperation in public limited organizations because due to their size it is difficult to cooperate between partners.
Flexible work time. We can work and have a vacation at any time. Other legal structures (for example, plc companies) have a job contract between employer and employee about work schedule.
Larger resources. Comparing to sole trader, each partner will invest money in business for raising more finance. Also, we have more resources and time.
Risk Management. Every partner in our place can manage risk together as It is easier compared to sole entrepreneurship or a huge corporation. Also, we can have a meeting and discussions about how things go in the firm.
Control of ownership. It is easier for partners to take a part in daily operations and It is well organized because we can control the profit and interest of the firm.
However, there are some downsides ?Unlimited liability, limited capital, no legal status, etc.? of this structure but we will have strict policy and agreement between partners.
The business item has a limited customer group which consists of parents that have a kid. By the secondary research, the location was chosen to the region of Amsterdam. As a result, the group we are targeting is parents in Amsterdam. Our primary research method is SNS survey because other research such as individual meetings is not economical. Data will be gathered from family groups within using Facebook and local communities where company owners live at the current moment.
Figure SEQ Figure * ARABIC 1 Part of the questionnaire
Our survey got 51 response overall, data and statistics below will be provided:
This data helps to identify the desires and behavior of our customers. The results tell that people want to have this type of place in Amsterdam. Using these charts we can determine the average price for activities and events, also to know when our customers are willing to come. Furthermore, it is possible to learn how to deal with different ages group of kids, the majority of them are from 4 to 8 years old.
Both tables show that the employment rates of men and women whose ages are more likely to have their children in the Netherlands.
Figure SEQ Figure * ARABIC2. Women’s unemployment
Figure SEQ Figure * ARABIC3 Men’s unemployment
First of all, one can see that unemployment is not common in the Netherlands at under 3 %, recently. Looking at these tables more closely, it is apparent that the percentage of women who are struggling with unemployment is not much more than that of men. In other words, this society in the Netherlands encourages women to stay in the workplace and work together. By contrast, there are still some countries where women can’t find their jobs after having a baby because of discriminations. In the Netherlands, it is possible to expect that there would be plenty of parents who have a child, but they still should spend the majority of their time working, not parenting. This point indicates that they have troubles with parenting a child by themselves.
The pie chart shows the distribution of people in each area in the Netherlands. This industry for kids depends on the population because it provides service for people. Usually, if adults exist sufficiently, children also do. Therefore, North Holland is the best province, because it is the second crowded location and has the highest ratio of employed people.
Figure SEQ Figure * ARABIC4 Population by Dutch province
Figure SEQ Figure * ARABIC5 Labor force by province
294005473664There are four other competitors that we chose in Amsterdam and they are known as a good place for children to play. They all have their own specialized selling points. These give us some information about the preferences of the parents. What parents like is professional programs to not only children but also parents. Also, they want such a safe place to play.
To decide our unique selling point, we searched for the main problems that parents face by articles. This information below is quoted by an article. It is common that parents accompany their child for taking them to school. More specifically, women with job usually have a journey to take a child once a day, and women without a job have a journey 1.5 times per day. Furthermore, the article says that working mothers spent almost a quarter picking up or dropping off children for school, daycare, sports clubs and so on, in 2003.
Figure SEQ Figure * ARABIC6 Journeys to drop off and pick up children
(Source: Statista, 2017)
Data from secondary research provides us with basic information about households in Amsterdam, the provided data was gathered from various confirmed resources.
Kinderwereld organizes activities and events for kids and their parents in order to make their life happier and more interesting.
Our partners have a knowledge of how to operate in this type of market and how to deal with customers.
Our place has a huge playground area, where kids can play with toys.
Caf? is located perfectly and affordable for everyone.
Advertisement issues. Our place finds it problematic to promote ourselves but our specialists are already working on this problem.
The food menu is small because our place wants to create a huge menu with interesting alternatives soon.
Rent price is a huge issue for us to contain this place.
Kinderwereld is going to organize classes like cooking, art painting, fun English, etc.
Hire and train more specialists for this industry. We want to prepare our workers to operate in teams and be ready to work with kids because it is not an easy job.
Our place wants to organize a charity event for disabled kids and those who don’t have families. It is the right step to achieve a good reputation in society and also to show that all kids deserve to have the same things.
We are going to buy new equipment such as medium tea tables for parents with creative paintings, new machinery for making cupcakes and a small photo house where we can take photos of kids to create a collection.
Our place has a main competitor Blender that does almost the same things as we.
Small and unknown market. It is very difficult to understand the behavior of this industry in Amsterdam because it isnt so developed.
Possibility to face challenges like having fewer customers during the winter because it is cold and parents don’t want their kids to be sick.
Kindergarten might be a competitor because it is like a school with the same opportunities for the majority of kids and they won’t be willing to come to our place.
Time management of parents can play a huge role because during the weekdays it is an issue to have customers except for weekends.