Entrepreneurship
Entrepreneurship
ENTREPRENEURSHIP
DJIBOUTI DRIVE-IN
Presented by : ILWAD MAHDI MOHAMED
Directed by : Miss RAOUIA HAMMAMI
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Table of content
Introduction................................................................................................................................................6
Chapter I : Entrepreneurial ATOM............................................................................................................7
Section 1 : Entrepreneurial process........................................................................................................7
1. Entrepreneurial motivation.........................................................................................................7
2. Business idea..............................................................................................................................8
3. Opportunity study.......................................................................................................................9
4. Risk and Uncertainties evaluation..............................................................................................9
5. Entrepreunarial decision...........................................................................................................13
6. Type of entrepreneur................................................................................................................16
Section 2 : Company presentation........................................................................................................17
1. Legalization and administration...............................................................................................18
2. Capital formation and capital formation techniques.................................................................20
3. Organizationnal chart...............................................................................................................20
4. Management and staffing.........................................................................................................22
5. Activities & portfolio...............................................................................................................24
Chapter two: Business Plan........................................................................................................................0
Section 1: Technical offer......................................................................................................................0
a. Description.................................................................................................................................0
b. Expected productivity rate and capacities...................................................................................1
c. Fixed and variables costs............................................................................................................1
d. Raw materials or suppliers.........................................................................................................1
Section 2: Strategic Analysis..................................................................................................................1
A. Analysis......................................................................................................................................1
B. Risk and uncertainties plans.......................................................................................................9
C. Strategic planning steps............................................................................................................10
Section 3: Market study........................................................................................................................10
A. Marketing mix.................................................................................................................................10
B. Market plan..................................................................................................................................13
1. Customer profile.......................................................................................................................14
2. Business research.....................................................................................................................14
3. 5 +1 forces of Porter.................................................................................................................16
4. Competitor analysis..................................................................................................................17
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5. Industry overview.....................................................................................................................18
6. Target market...........................................................................................................................18
Section 4 : Budget study.......................................................................................................................18
Section 5: Financial study....................................................................................................................22
Section 6: Communication plan...........................................................................................................26
Chapter 3: Management and development of the SME............................................................................27
Section 1: Management process & plannification................................................................................27
1. Planning...................................................................................................................................27
2. Organizing....................................................................................................................................29
3. Controlling...................................................................................................................................36
4. Leading........................................................................................................................................37
5. Staffing.........................................................................................................................................38
Section 2: Growth planning..................................................................................................................43
1- Growth plan.................................................................................................................................43
2- Growth ambitions.........................................................................................................................46
3- Growth methods strategies...........................................................................................................47
Section 3: Challenges and opportunities to sees...................................................................................47
1- Challenges....................................................................................................................................47
2- Potential opportunities to develop................................................................................................48
3- Exit plans.....................................................................................................................................48
Conclusion...............................................................................................................................................49
Appendix..................................................................................................................................................50
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Glory is to the almighty God, creator of all things, the most merciful for all his blessings
with whom he has showered us and for giving us the courage and the strength to do this
modest work.
We also thank our teacher Miss Raouia Hammami; we would also like to express our
gratitude for her patience and her support which has been precious to us in order to carry
out our work safety.
So this work could only be carried out with the support of several people whom we would
like; through these few lines, to thank from the bottom of our heart
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Introduction
His first drive-in took place in June 1933 on Admiral Wilson Boulevard in Pennsauken. His argument for
having sales was that the drive-in was a place where “the whole family is welcome, without having to
worry about the noise the children make.”
Unfortunately it only lasted three years but the concept has been bought by other states. The Drive-In is
a concept known for its affordability and comfort for large families or families with children without the
fear of disturbing other patrons. The drive-in was successful in the 1950's and 1960's across America, but
today those numbers are down. This concept, which is a symbol of American culture, has been adopted
by many other countries as well.
Today the world is affected by the Covid-19 epidemic, and the drive-in is making a comeback. Many
countries have started to put back the open air screens to welcome customers. The countries very
strongly affected such as France, from the decontamination of May 17, 2020 theaters were still closed so
they made place Drive-In cinema. They started to be installed near the Champs Elysee in Paris where the
vehicles were parked next to each other but always keeping the required space. But not only! Notably
also in other countries by developing modernized concepts with reasons other than the cinema.
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Chapter I : Entrepreneurial ATOM
Section 1 : Entrepreneurial process
1. Entrepreneurial motivation
Beginning a business requires a lot of hard work, dedication and persuasion. It is by having enough
courage to continue while overcoming trials and difficulties. A successful entrepreneur has to take risks
and seize opportunities. But the most important thing is to have a strong source of motivation to keep
going and to continue until you reach your ultimate goal.
Like any other entrepreneur my ultimate motivation is to get funding from this project. We are
living in a time of pandemic and all public entertainment is closed such as amusement parks and
cinemas despite the television already available at home it is still quite boring to stay in your
living room all the time. Seizing this opportunity I asked myself how to go to the cinema while
respecting health safety?
Djibouti once had an open-air cinema where everyone went to watch new films called "Cinema
Odeon". Later on, with the arrival of the Bawadi Mall built by the Saudis, closed cinemas were
installed providing all the necessary materials but also snacks (popcorns, drinks, sweets,
burgers...).
The closures during the lockdown in 2020 and all the regulars were at home like my father who
loves the sound effect of the cinema. So all the cinema addicts and nightlife addicts will be
happy with this idea and will be able to enjoy this novelty now and even after the pandemic.
Secondly, my source of motivation was to bring this touch of originality to the country. With
every new opening, whether it's a restaurant, shop or whatever, people tend to go there a lot. I
wanted to bring back a new concept that people could enjoy while being with their friends or
family in their own vehicle and discuss or comment on the film without bothering anyone.
Most of people have founded great successful businesses while pursuing their interests or
hobbies.
A lot of young people are very bored during the summer holidays and I myself can't find a place
of entertainment to go with my friends to take our minds off things. That's why I wanted to set
up this American concept in Djibouti.
Thirdly, to prove that I am able to do it as an only child, people tend to believe that I live under
the wings of my parents, I want to prove to them that I am able to do it and that my success is
defined thanks to the help of my parents but also to my own efforts and dedication. But also
because of my personal will to prove to myself that I am capable of setting up a business and
making it happen.
As an entrepreneur I have to stand up no matter what happens and not give up when an obstacle
or difficulty comes up. I would like to show that everyone is capable of being and acquiring the
assets of an entrepreneur and of committing themselves fully with courage and dynamism.
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Last but not least, it is to be my own boss and to earn my salary depending on my own success
and not to be limited to a fixed salary every month and not to be under the authority of a
manager giving me orders. I am a flexible and organized person and I don't like to be dictated to
or to comment on the way I work. I would like to be the one who knows what to do and how to
distribute the work in my own way and make sure that it is done properly following the rules I
have assigned.
2. Business idea
We are currently living in an alarming situation; the epidemic is spreading more and more and
taking on a lot of importance. The first confinement in Djibouti was very difficult as I couldn't
change the air and go out to have a good time with my family and friends. Being a quiet person
who likes to have a good time in front of a good old comedy movie on the big screen with
friends or relatives, I found the concept of Drive-In very practical during these perilous times.
The first reason was to indulge my personal pleasures but also to create money through it.
Spending my free time in front of a film is my favorite pastime and my aim was to share it with
everyone but in a way that is appropriate to the current situation but also affordable to others.
Although the concept dates back to the 90's, it has been very successful in Europe, especially in
France where the situation is critical. My source of idea was the analysis on my situation during
this period of covid-19; the cinemas can close at any time and not to have access to the new film
which has their first diffusion in
the cinema. After asking some
people about their situations
during the confinement I realized
that our situation and our
depression were similar.
Loneliness is very frustrating and
can lead to very serious cases
especially for people living alone.
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3. Opportunity study
The opportunity was not created but rather manifested itself. Drive-in theatres are not known in
some countries, but it is a very popular concept in the States of America. The Drive-In is similar
to the normal cinema the difference is that it takes place outdoors inside a vehicle. Djibouti has
only one cinema which was recently opened with the construction of the Mall.
The Drive-In is only seen in American films, especially teen or family films. It's a new, original
and fun concept but it can also appeal to young and old alike as there is no competition in the
market and it's the ideal concept especially during these difficult times.
The pandemic has closed many similar businesses related to entertainment such as amusement
parks, karaoke..., but has opened many doors to others as well. This American concept will be a
new concept but also a way of approaching, relaxing and creating memories for all Djiboutian.
Every successful business has risks, which must be faced and overcome on a daily basis by
implementing effective operational action plans. Every entrepreneur must be aware of the
problems and difficulties behind every job and know how to deal with them intelligently and
expertly.
In this part we analyze the risks we can face, then make scenarios, then estimate the percentage
of realization and finally finish with the action plans or corrections.
a. Risks :
Weather risk:
Weather conditions are the most likely risk. Living in a hot and humid country, it is very
difficult to organize movie nights during the summer unless all vehicles are air-conditioned, as
most cannot afford it. Or the heavy rains and storms that turn the city into a muddy sea.
Such as the scene of a drive-in audience being degraded in the film Twister will become real
and a devastating tornado will be seen.
Although this concept is used by many countries such as Germany, South Korea and France, it
is ideal, especially during the Covid season, but it is not a shield against other sources of illness,
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in this case the most common being the exhaust from a car's engine, which is harmful to other
cars. When several cars have their air conditioners on, each car's air conditioner absorbs the
engine exhaust of the other vehicles around it, which is very risky for health.
Financing risk:
The most common risk for every entrepreneur and the most difficult to handle. Although I have
personal funding from my savings of 500,000DJF, my other sources are varied such as love
money and bank loans. Financing is the lifeblood of any business, and is supported by many
financial supporters and helpers such as family and friends. This project requires a solid amount
of money in order to complete it with all the entertainment included so that the customers are
satisfied.
Reputation risk:
Any new concept in a country has to go through the legal procedures and be recognized by the
state in order to pay and have all the necessary paperwork. Taxes related to the purchase of the
land or participating in taxes are very high costs. So showing that profits are very common will
increase our costs.
b. Different scenario :
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c. Action plan
Weather risk :
Weather is a risk that cannot be avoided, it is a God-made phenomenon that cannot be predicted
even the weather broadcast on the news is sometimes unlikely. It is an unavoidable risk, and the
only way to protect you from it is not only to check the weather in advance before broadcasting,
but also to locate in a low risk area. Areas where water circulation is very smooth with
sanitation. In addition we will give health advice for the usual social distanciations but also in
case of heat and humidity we will take basic and effective measures such as:
Health risk :
To avoid the spread of air pollution from the cars we will take the necessary measures such as
leaving enough space between the vehicles so that the air can pass properly between the cars.
Knowing that Djibouti is a country with low production industries unlike countries like China
and therefore pollution is not something that could affect the population nevertheless the
majority of cars are all air-conditioned and therefore have their windows closed without
worrying about the sound knowing that the sound is broadcast directly by the radio stations so
the volume is to increase and decrease as desired. Moreover, for the health exercise of the covid
we have a certificate proving that we apply the barrier gestures and that we have the necessary
devices to protect ourselves and others.
Financial risk :
Financing is an important phase of any project. Finding financing can be difficult at first but
knowing that I have savings of up to 500,000DJF, but also a bank loan that I intend to make
with the Djibouti Economic Development Fund (FDED) which is a state-owned institution that
grants credits for investment financing with a lower rate than those of the banks as well as love
money. Creating a very large place accessible to all is difficult at the moment knowing that our
budget is insufficient so we will settle for a space that can hold at least a fairly large number of
people. Once we have seen that this entertainment is profitable, we can think about expanding it
and proposing new activities.
Reputation risk :
Reputational risk can be addressed by thorough data analysis, i.e. analysis of networks and
comments about our project, and always addressing issues of negative opinion of a person
before it spreads. We need to monitor the comments day by day and always provide a solution
for people who complain.
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We will be able to put in place a corporate governance system to identify the origin and the
extent of the situation and also to have direct contact with our customers and ask them what they
do not like or what improvements can be made.
When I register my company, taxes are paid three years later for startups that are just starting
out. Here in Djibouti the administrative costs such as the patent depend on the type of business
you want to invest in so it is case by case, but the overheads are detailed in the budget.
Regulatory and paperwork issues are compulsory if registration with the state has been
completed but any expenses relating to taxes and duties will be paid three years after the
financial year so can be manageable in the meantime.
5. Entrepreunarial decision
a. Decision process
My decision is to confirm the decision to undertake the business so that it can be completed and
run to generate profits.
At the moment we are still in the initial phase and I have to work out all the bare necessities to
start my project. We are still in the phase where we have not yet bought the ideal land to put our
huge screen so that the property belongs to us and to satisfy all other material needs.
Gathering information
This is an important step in order to get an overview of the company and its movement or idea
towards opening this new concept.
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Market analysis:
The view on the company was once negative knowing that it was a new concept the company
did not realize the general idea behind this project.
That is why we did a new study and asked their views today in the 21st century with all the
moderate concepts that exist. We will analyses the pros and cons according to the opinion of the
society.
Pros:
Entertainment provided
It's not only a place to watch movies but also to enjoy the mini activities and games we offer
just before the show to set the mood and change the routine and entertain our customers. These
simple little activities that cost nothing at all attract customers. This is a strategy used by many
Drive-In theatres, for an example see the Youtube video link in the annex (see annex).
A place to connect
It is a place where families can spend time no matter how many people there are and enjoy the
good times; the key is to have a car large enough to take everyone. Knowing that Djibouti is a
country where family ties are very sacred and people are very jovial, they would not hesitate to
go there with their children.
A place to relax
For people who prefer to go out and watch movies alone without being disturbed by children
complaining or going to the toilet or eating their popcorn forcefully, this is the ideal place. Each
person is quiet in their own car without being disturbed with plenty of space between the cars.
Food Stands
Food will be provided by our suppliers for sale to our customers so that they can eat while
watching their films in peace. There is a variety of food ranging from sweet to savoury and from
spicy to not so spicy, all of which means that we offer a wide range of fast food and snacks.
Cos:
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Equipment:
Requires equipment, i.e. you have to be equipped with everything you need in your car,
including cushions or sheets. The only things we offer are snacks.
Lack of space
Because yes, the space may be tight and cannot hold many people or cars, there is a limit not
only to avoid accidents but also for the social distancing of the current situation.
External noise
Disturbing and disturbing noises from nature and from the neighborhood cannot be avoided.
Insects
Djibouti is a country with a problem of pits which attract insects such as cockroaches and rats.
We also have the problem of mosquitoes during the cool season which bite and can lead to
diseases such as malaria which has killed more people than Corona.
1. Buying the materials is too expensive so the best thing would be to tell the customers
to bring them back if they need them
2. Provide a space for some people to park their cars and sit on the ground as a picnic
3. Arrange with future builders to see what times they do construction or make sure they
keep animals away that can make noise.
4. Provide mosquito repellent materials during the winter and keep our grounds clean
and sanitary.
Identify alternatives
The alternative would be to create with the land to buy a kind of fair where I could rent out the
space to some people who want to set up there and offer many different activities and sales
corners whether it be food, toys, or souvenirs. There would be little activities for young and old.
Or set up a renovated bowling alley accessible to all to compete with the old bowling alley that
is currently closed, as there are always several plans in reserve in case of shit happen.
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Main idea Alternative 1 Alternative 2 Best alternative
(Fairs) (bowling)
Feasibility 80% because 40% Ask for a 60% Bowling The best alternative is
it requires less renter to set up alleys are rare or the main idea because
budget and and the profit non-existent compared to the
can be done generated by bowling alley and the
very quickly these activities fair, this one would
are not shared. I be more attractive to
benefit from the customers and they
rent and my would tend to prefer
personal stands it. The existing
bowling alley in the
past was already quite
coveted and would
not attract many
customers apart from
white people.
Acceptability 60% 30% 50% The best alternative
of the cost Drive-in is The fair consists Bowling can be would be the general
expensive but of sharing its because it is an idea
provides a profit with entertainment
very good others because activist and can
income the activities interest young
will be activities people but also
and materials adults.
belonging to
other people - I
only rent them
the premises.
Accessibility 90% It is a 90% It is also a 70% It is a place The best alternative
for clients place that is place accessible where people who would be the general
very to all. are soft and idea
accessible to civilized enough
everyone, often go, knowing
whether on that bowling is a
foot or by car, place where you
enjoying the can meet your
good weather superiors.
and nature.
Desirability 80% 50% This kind 70% Many like to The best alternative
According to of concept has relax and will be would be the general
my market already been much desired but idea
research, the adopted in some only a minority of
majority of public schools, individuals who
people liked such as the are predominantly
the concept Nativity which men.
very much and organizes fairs.
want it to be
accessible.
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Choosing between the main and the alternative idea
The choice of the general idea is mainly due to its desirability by customers, especially young
people who are looking for fun and original entertainment venues. With the drive-in they can
not only have movie nights but also include small picks to make it cozy.
The final decision would therefore be to invest in this concept which generates not only profits
but also many benefits.
6. Type of entrepreneur
I am a copycat entrepreneur because I did not invest in the realization or creation of an idea but
rather I just took the concept of Richard Hollingshead who had developed it in 1933.The drive-
in is an entertainment dating back to the 30's. I wanted to use the same concept because it fits
perfectly with the current situation of pandemic.
As Paul B. Brown said, co-author of the 2012 book Just Start "It's always easier
when you're starting a company to try to improve an existing idea".
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To begin with, I decided to go into the field of cinema to develop the concept of Drive-in in
Djibouti city.
Firstly, to define the Drive-in is an open-air cinema where spectators watch the film directly
from their vehicle. Originating in the United States, drive-ins were born in the 1950s in the
United States. Being a person passionate about the cinema since very young I chose this project
to create a Drive-in because first it is a concept that does not exist in Djibouti, and since the
lockdown opening this concept has become trendy in some Western countries with the
epidemic of coronavirus that obliges, this famous idea came to my head.
Hence my launch of this new project called "Djib Drive-In". To do this, you need a large flat
space without trees, a giant screen, a car radio in your car, and the broadcasting is done on an
FM frequency. Once installed, the audience rents a radio channel (to hear the sound of the film).
After the closure of the two largest cinemas (Odeon and Olympia) in Djibouti in the 1990s, 30
years later the cinema will reopen at the Bawadi Mall in 2020. To this end, there is only one
cinema.
In addition, according to my questionnaire conducted for this study, it emerged that mostly
young people aged 10 to 30 years who are those who frequently go to the cinema especially
since 73% of the population of Djibouti is under 35 years according to the UNDP, this explains
more or less that more than half of the Djiboutian population are interested.
Djib Drive-In will be located in Doraleh, which is a parking area where everyone parks, so it's
convenient for us. We will prioritize part of a plot of land in Doraleh, which is a very beautiful
place that is very popular with Djiboutians. This concept will attract young people, which will
make the open-air cinema a success. Even when it rains, you can still be sheltered. And of
course there will also be popcorn and drink stands.
1. Legalization and administration
a) Legal status
Djib Drive-In is a sole proprietorship. I prefer to undertake this project alone and with the help
of my salaried assistants. In addition, the advantages of a sole proprietorship are that you
yourself are the initiator of the project, have the freedom to make decisions, are your own boss,
practice your profession with passion within your own structure in complete freedom, especially
in terms of gaining experience and self-confidence, and the advantage of being able to set your
own remuneration according to your needs.
Since the sole proprietorship does not distinguish between the professional and private assets of
its founder, there is no risk of the company being subject to misuse of corporate assets.
Moreover, it does not require share capital.
The entrepreneur operates in his own name. The company's assets are merged with his personal
assets, and the company has no rights of its own.
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b) Taxes administrative registration formalities.
Social reason: Establish an open-air cinema where spectators watch from their vehicles.
Commercial local: Djibouti city
Headquarters: Doraleh, Djibouti
Owner: Ilwad Mahdi Mohamed
Date of creation: 22 December 2020
Date of inauguration: 04 March 2021
Activity sector: Cinematography
Phone number: +253 21 35 23 81
Website: www.DjibDriveIn.dj
Social networks: Facebook: Djib Drive-In & Instagram: @Djib_Drive_In
This website is created to allow customers to get information about news, book / buy online
their ticket without wasting time, contact
us...etc. Also our social networks to be able to
share news, events and special discounts and
contests...etc. in order to attract more
customers which will make our cinema
known. In addition to the social networks I
would distribute posters (see annex).
It is possible to set up a business without money, but this is risky and there are costs
involved. For this reason, a source of financing is needed to ensure the success of the
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business.
As I was thinking about this future project, I had to take a student job as a cashier, which I
started last year when I decided to work part-time in order to save money. I was able to save
500,000 francs. (Self-financing)
But unfortunately, this project requires quite a lot of financing, so my savings are insufficient
for its realization. That's why I turned to bank loans, which we'll develop in detail in Chapter
2 (Budget study) and we'll find the amortization table in the appendix with the sums to be
paid in fixed installments. (Credits)
3. Organizationnal chart
Note: Knowing that this is a new business, we must not spend too much money, which is why
for the moment I am content to have the minimum of employees and the bare necessities. I took
the expertise and skills of my father who was willing to help me in my first steps. This is by no
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means a family business but rather an expert help. In addition, it is necessary to have employees
from the beginning because only the CEO cannot take care of everything; you need a projection
expert, security guards for the many customers and the stand sellers.
CEO
Deals with final decisions
Deals with financial and budgetary activities
Aware of all troubles or difficulties
Assure that everything is going well
Technical assistance
Technical issues related to network interruptions
Maintain and monitor all aspects of computer networks
Creating training materials pertaining to computer troubleshooting and usage
The employees will work full time with of course days off when there will be no filming. For
the time being, the employees will not be able to switch between day and evening work as there
are only six employees and for the time being they will work full time but will of course have
well-deserved breaks.
Our activity will start in the afternoon around 4.30 pm, but the employees will arrive at 3 pm for
the installation of all the materials and the import of the food from the suppliers which will be
transported in our personal vehicle in order not to spend for the purchase of an expensive truck.
Then the confectionery carts will already be on the ground, all we have to do is install them.
We'll start by clearing the screen, then the field and then setting up the carts and preparing the
food and we'll see the cars coming we'll start collecting the tickets, guiding the cars to their
respective parking lots, and serving them if they need anything.
b) Staffing
I wanted to invest in employees who are very competent in projection and in the use of
technological data because the other jobs can be done by other people, it is not necessary to
have people with diplomas or masters to do this work. Fortunately my father, who is an expert
in the field, was willing to lend me a hand instead of paying an employee who would cost me
more; his normal job ends in the afternoon so he can free himself in time in case of network
problems or other.
Drive-In is a business that requires a lot of investment in technology, which is why I invest in
skilled and expert employees who command a high salary, but the security guards and
salespeople have no special skills or qualifications.
Job identification
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Title: Projection technician
Department: Technology
Reporting relationship: CEO
Date of analysis: 22/05/2021
General Summary
Major tasks: His major task is firstly to maintain the good function of the projection
equipment, then to receive and check the film reels, joining or repairing them as
necessary and load the reels on to the projector in the right order. And finally to make
sure the film runs smoothly through the projector and is not damaged.
Duties: Assure that is projected in the right way and the right time, he need to know
about local licensing requirements for showing films, and health and safety regulations
concerning the cinema. Projectionists liaise with the cinema programmer, who draws up
schedules and decides which films are going to be shown next.
Limits: He is not able to deal with technological materials besides projections materials
or any other technology such as analyzing data, breakdowns of computers or dealing
with software.
Working conditions: An office as well as all the materials which accompany it such as
pens, pencils erasers, computer, extension, papers and tablet. He must also have a full
time internet connection.
Hazards: Fear of making an error while projecting and interrupting the movie.
Job specification
Optimal profile:
Projection techniques
Knowledge of cinema or projection tools
Projectionist Certificate
Clever
Competencies:
Fast to find solution
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Problem detector
Quick use of materials
Auxiliary activities:
Selling snacks:
Pop corns
Sandwiches
Juices
Sweets…etc.
Games
Cultural questions
Songs
Gifting ice creams or free tickets to winners
b. Portfolio
The portfolio is a strategy that analyzes and assesses each product and its current level of
success. It also involves identifying risks and future opportunities that may occur.
This analysis can be carried using tools or models such as BXG Matrix or McKinsey Matrix in
our case we will go with the BCG Matrix.
The Boston Consulting Group Matrix involves four parts that are:
Cash cows
Stars
Question Marks
Dogs
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Cash cows: My cash cows are the selling of food to customers this is an activity that is basic in
every movie theater if it was normal cinema or Drive-in. It grows drastically slowly. Cash flows
generated in cash cows are generally financed in stars or question marks.
Question marks: Question marks are these are the products with a high market
growth, but with a low market share. In this kind of case we have the new
activity that we are suggesting adding it such as opening a new Drive-In cinema
as a second place for cars to go if they did not find place in
the initial one. But it’s a thing that needs to invest on it a lot.
Stars: Stars the projection of movies they are already been invested in
them a lot in skilled workers and high technology and modern equipment
they will have a high market share since they are projected in a new and
unique way.
Dogs: The classical or old movies are boycotted now so people tend to have the newest
film at the cinema even though classical movies are preferred for some clients. Old movies are losing
value and are preferred and replaced by new and modern movies.
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Chapter two: Business Plan
Section 1: Technical offer
The drive-in cinema is now very famous and is expanding around the world. I also wanted to
make Djibouti a country that also gives the opportunity to have this kind of original
entertainment. Djibouti's population is young and energetic and would love to be entertained
but unfortunately entertainment is scarce, there are many restaurants and cafes but only a few
places to be entertained with friends and family.
The drive-in has been around for a very long time, the concept continued to exist in some
states in America, and was soon taken up by other countries such as South Korea, Dubai,
France and Germany. The pandemic was obviously the trigger for this expansion and today
we see many drive-ins with modern and original concepts.
a. Description
It was both an opportunity for me during that time because in the mall cinema the boundaries
are the one chair gap between people, so I wanted them to be able to watch a film without
worrying about barriers or wearing a stuffy mask throughout. But it was also to make a
concept that I liked personally to enjoy. So word for word, it's an open-air projection to watch
films like in a normal cinema.
It is an activity that requires employees with a good expertise in the use of technological
products in order to have a good projection and a good quality of sound that will be
broadcasted on the radio channels.
Audio equipment
Xenon or laser-powered large-venue movie projector (Air screen)
Optimal screens and screen sizing
Cinema playback server
Concession equipment
FM Broadcast Transmitter
Power extension cord
Cleaning materials
Food stands
0
b. Expected productivity rate and capacities
We expect a high quality of our products with the price we bought them for; they are highly
modern products allowing the broadcasting of a high definition screen quality. We therefore
also expect our technicians to be highly qualified in the use and management of these
expensive products, as they need regular treatment and gentle care. We expect them to be
highly qualified for these very important tasks. We expect that our productivity will be high
because entertainment is very popular with the Djiboutian, who are mostly young and have
many children. Our activity will be very manageable and regular, as we expect a very large
number of customers.
The costs are mainly electricity which we pay every two months in Djibouti for the projection
I use. Then the variable costs can be the purchase of materials for repairs, replacement,
cleaning or food for the food stalls.
A. Analysis
1. Vision
- Our drive-in cinema will provide the best possible service to our consumers, with
enthusiasm and professionalism.
- To be the number one entertainment venue in Djibouti, a place where people can
watch their favorite movies with their loved ones in a fun and original way.
- To destroy the competition which is the closed cinema in the mall and show that
customers prefer affordable prices and a relaxing space or an original concept.
2. Mission
To provide entertainment in an original, fun and quiet way. To meet their need for
entertainment in a country lacking a place for young people or families, inexpensive and
great. We also want to be up to date with other countries and bring that modernity but also
prepare for the next confinement may come and still go out safely watching his favorite
movies.
3. BHAG
1
To be the most and only preferred entertainment of the entire country.
4. Core values
Quality
Entertainment
Excellence
Client satisfaction
Innovation
Quality
We will provide the best quality of our services to our customers. Knowing that quality is a
key element for the success of each business. In our field, quality plays an important role,
which is why we are improving and investing in quality material.
Entertainment
We will provide fabulous and relaxing entertainment to all kind of consumers that we have,
because our activity is not specified in gender or age it is for everyone who wants to entertain
and want to spend a good time.
Excellence
The title of excellence makes it possible to create an important positive image of the
company; most of the customers are effectively based on the most renowned or best known
company, especially within our society, which is based on word of mouth. Because a satisfied
customer will surely talk about his experience.
Customer satisfaction
A happy customer is a spending customer, he will not hesitate to put his hand in his pocket to
have fun, but however there are several ways to make his customer satisfied as satisfied by
our services or satisfied by the way it is received because taking good care of your client is
your hand in his pocket. The client is in particular the main resource of a company.
Innovation
Innovation, all our investments are made to innovate. Our company must innovate so that it
can survive in this very advanced world full of innovation and modernization.
2
5. Strategic objectives
Our objectives are very varied in order to always innovate and to bring that touch of novelty
to each period so that customers do not get bored and keep coming. In order to set up the
strategic objectives we will develop the SWOT in order to analyse the strengths, weaknesses,
opportunities that occur and the threats that can be fatal to us.
S W O T
Strength:
1. Original concept we are the only company that provide a drive-In cinema in Djibouti,
there is a monopole. We offer a unique experience compared to our competitors.
2. A range of services are available to the customers to fulfill an overall satisfying
experience. We are offering stands of foods to fully be relaxed while watching your
movies but also entertainment while waiting for the food such as playing games or
showing people on the big screen on their cars, asking questions and winning ice
cream.
3. Pricing strategy such as making promotions for people that are more than four, giving
family cards for promotions for regular families.
4. Accessible place, easy to come and facilitated for cars.
5. Online booking services.
6. Demand less time to build and not complicated.
Weaknesses:
1. Lack of competition: there are no other companies that propose the same specific
service.
2. Willingness to spend on those attractions: people today are more willing or ready to
pay for this kind of entertainment.
3
3. Pandemic: covid-19 are now expanded and people must be 1m apart from others but
with our service you can go out with your family in a safety way.
4. Recent movie diffused earlier for the pandemic situation: since cinemas are closed the
movies are available for downloading or some websites so that people can watch
them.
Threats:
1. Weather: even if we can prevent uncertainties can arise such raining and when it rains
in Djibouti it’s very difficult to engage at something.
2. Restrictive licenses.
3. Noise complaints from neighbors.
4. Cars restrictions.
We analyzed this data and played the cautionary card, i.e. we introduced ourselves into the
market in a delicate and gentle manner without attracting the attention of our competitor. So
we will only impose our key objectives which are
In the first five months we hope to have a decent business and to find effective and
practical ways of promoting our business so that it becomes well known and attractive
to customers.
In the first year we will try to adopt a competent staff in order to provide the best
service to our customers and to plan a wide range of activities in order to earn profits.
Then for the next five years, our goal would be to be able to pay off a large part of the
bank loan we have taken out to start our business, as it is in the long run that turnover
is visible.
And further provide new activities in addition to keep the innovation and to always
make something new that not bored consumers.
6. Market analysis
Our consumers of our services are mostly families, knowing that it is families who often have
cars to move around. It is a concept that is applicable and affordable for families. On
weekends, family films or animated films such as "Mulan" or "Rapunzel" are shown. Our
marketing strategies are mainly focused on children over 10 years old.
It will be located in a place that is accessible to everyone and also safe for cars so that they
can park without tumbling or muddy roads. Today, drive-ins and cinemas are being replaced
by applications such as Netflix, Amazon and the purchase of new films.
4
Djib Drive-In is a flourishing company, because technology is a field that evolves day by day
everything is modernized. The Drive-In cinema is a concept that basically not existed before
so it’s a premiere. Old concept are taken again and used in a modern way so that they can help
or entertain people. This is why this company is in the introduction phase, we hope that it can
grow a long time longer and we will try to ensure that this can happen with the determination
and the intelligence of our employees.
Activity
Cinematography
Sales :
Services :
Movie diffusion
Food stands
Their Clients
Families
Teenagers
Couples
Netflix
5
Amazon
Mega video Djibouti
There key success factors are:
Amazon
Djib
Star Drive-In
Price / Performance cinema
Netflix
Mega
video
Service variety
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10. PESTEL
POLITICAL Difficult relation between the biggest foreign market which USA
for taking the same concept
Knowing that our business is among the only ones to provide this
kind of service then the government will not hesitate to take
advantage of it.
They are also people who love new things and we will not hesitate
to try them and do a lot with word of mouth.
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Modern and new (old but revived) things are now based only in
technology.
LEGAL Respect all procedures of buying new films and not stealing them
or hack it.
We must take into account the copyrights so that we are accused of
appropriations knowing this concept is specifically American.
Respect health and safety rules according to our activities and
work while keeping the safety of the customers.
ENVIRONEMENAL Concerning fast food people can throw the garbage on the floor
such as popcorn bags, sandwiches, bottles…etc. but we will assure
that everything will be cleaned after every show.
Pollution due to the smoke of cars can affect the environment of
the country because for using the air-conditioner the cars are all
on.
Djib Drive-In has one very important point compared to its competitors and that is the
originality of its service, i.e. it is the only one in the market to provide a full size cinema to its
customers. There are no plans or future entrepreneurs currently thinking of opening an indoor
cinema and if they do, the quality of our services will be contrasted and noticed. To ensure
that our services are of the highest quality and preferred by our customers we will be content
with having high quality products that allow for good projection with a clear screen and sound
but also the expertise of our technicians to fix any technical problem in a flash.
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B. Risk and uncertainties plans
For the predicted scenarios and probabilities done in chapter one/section one we are going to
do the matrix and try to analyze the most riskier scenarios by doing assessment matrix and
giving eject plans or plan B’s.
Risk severity
A B C D E
Frequent 5
Financial Weather
risk risk
Occasional 4
Reputation
risk
Remote 3
Health risk
Improbable 2
Legal &
regulatory
risk
Extremely
improbable 1
Eject plans or plan B that we have for the most accurate risks and that can be dangerous for
the activity:
Weather risk: Take measures already in place for any disaster. Plan B is to be proactive, not a
contingency plan to be made after the risk has occurred, but rather a plan to anticipate it in
advance, because weather is a gift from God and cannot be avoided, but can be protected
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from. The aim would be to prepare circuits so that water can circulate without stagnating on
our land.
Health risk: During this period we can make sure that social distancing is respected and that
everyone stays in their cars and keeps the cars away from each other. For illnesses other than
covid or accidents that may occur we have a first aid kit with a minimum of experience of our
security staff for first aid to be done before help arrives.
Financial risk: the solution would be to diversify our sources of profit, so we have set up food
stalls as well as insurance to protect us from any risks.
In this part we will define the strategic objectives and the level we want to reach in order to
make our business known and satisfied by our customers and to gain big benefits.
1. Healthy sales in the first year and try to double year by year. We are trying to make
easy sales since it’s our first time on the market so we are dealing with the safety card
and only doing my activity in peace without confronting my competitor.
2. Get enough profit to cover the loan taken from the bank. Since we have taken loans to
finance the businesses we must repay quickly so it will not accumulated and have to
pay more with the interest.
3. Finish the payment of loan to get some benefice by year five.
4. Do some savings in case of renovation or purchase of new equipment.
Those are the main objectives to achieve for our company we try to firstly promote the
activity, pay the employees and paying suppliers. We are
firstly dealing at a break-even point means no benefice we
gain to run the business and have a position on the market.
A. Marketing mix
a. Product
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50 cars - Classic screen 7m/1,75m
100 cars - Drive screen 9m/2,5m
200 cars - Drive screen (two sided) 9m/2,5m
And the purchase of small confectionery trolleys for the sale of fast food and
nibbles in case our customers are hungry and what better way than to eat in
front of a good film. We will try to buy these trolleys due to their very low
cost and easy to move from one area to another.
b. Place
The area in which we set up our activity is a vast, spacious and secure place; we chose this
place because it is a very accessible and comfortable environment for all types of vehicles.
We are located on Doraleh which is a place where families can park and even have picnics on
the ground enjoying the afternoon breeze.
c. Promotion
Our tactic is to :
To make promos for customers hosting more than four people, i.e. discounts
on the price if they are numerous knowing that the payment is done
individually and can be expensive when it is a large group of people or two
tickets bought and one offered to attract customers see the poster on the
appendix.
Make membership cards for loyal customers, a family card for families with
many children and the more they use the card the more free things they get like
snacks or souvenirs.
As far as recognition is concerned I let the word of mouth do the talking or
share the news on social networks like Facebook and Instagram (see link in
first chapter) or our page (see overview in appendix)
d. People
When we talk about people, we are of course talking about our human resources, our
employees, the image of our company, because yes, the employees are the people who reflect
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the image of the company and who have direct contact with the customer. That's why
communication with our employees is important.
At the beginning of our activity we will have two technicians specialized in technology, two
security guards who will be there to cut the tickets as well and 3 stand salesmen, currently this
is the maximum number of employees we can finance. Later on in our plans we plan to
expand our space and double our employees to handle more customers and to strengthen
things like security and avoid theft or fraud.
e. Process
For the process the films will be shown from 5pm in the afternoon to sunset and then from
7pm to 9pm we will show action and other films and after 9pm we will tend to show horror
films to match the gloomy atmosphere. Reservations can be made online or on site and we
will be releasing the date of the films in advance so that customers can book their seats in
advance.
At around 5pm before the film is shown we will be holding games to win prizes or ice cream,
one of our staff will be turning between the parked cars with a camera on the screen so that
everyone can watch the game at the same time, these will be general knowledge questions,
quizzes or word games.
We will also advertise for other companies who like to share their activities by taking
advantage of the groupings we create and of course pay us to let them take advantage of
distributing their flyers. Please note! These are only companies that have no connection with
entertainment or similar to our activity, we are not going to invite the wolf in our hen garden.
f. Price
First of all, we will impose our market penetration strategy of offering affordable prices and
promotional opportunities mentioned above to our customers. Then our prices are naturally on
a cost-plus-basis - our prices must at least cover our costs as it is difficult to make a profit in
the first years. The main thing is to make enough revenue to pay the salaries of employees,
suppliers and fixed and variable costs.
g. Physical evidence
We will make sure that the car park is well aligned and that the cars can park properly in the
corner that we have sized so that the cars in front, in the middle, behind and on the sides can
see the whole screen and enjoy the movie without complaining about their seats. Our space
will have a cozy atmosphere with warm colors that will make you feel like you are at home in
your living room with some good caramel popcorn.
Our color theme will be orange, brown and beige to keep with the party atmosphere. Our
tickets, candy carts or any other paint will be in these color tones. We will have large speakers
12
for announcements or simply to play the sound of the film for those who prefer to stay
without a car. We will also have toilets set up for our customers' needs.
B. Market plan
1. Customer profile
Categories Fact on the market
Gender Male/Female.
Location Djibouti
Purchasing power Need to afford minimum 5000djf to completely profit from the activity
with all full pack of services of a night with friends.
How often do they Frequent but came mostly in the week-ends since everyone does not
buy the services have school or work the next morning.
2. Business research
Research question
Our study is based on the Djiboutian population, with a total of approximately 973,560
residents in 2019. We aim in particular for a specific number of people and a specific type
who can correspond to potential customers.
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Sample size
Saturation point
The saturation point is to 120 people no more or less. We will be analyzing only 120 of the
answers to have a precise and a global view of the analysis.
The technical data collections are techniques which make it possible to collect information on
a given research subject, the tools or the means of research are varied and we have the
embarrassment of the choice we have the questionnaires, the interviews, the observations, the
experiments, polls, etc.
For this business research, I make a survey that was posted on socials medias and shared with
peoples to have their opinions on a Drive-In cinema or discover what is it if they do not know
the concept and try to find if it is a good entertainment to add in Djibouti or not.
Using statistical package for the social sciences (SPSS) as a tool to the answers and have a
clear idea of how will be this business helpful or an opportunity as a flourish business.
Descriptive statistics
SPSS
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Figure 1: Question 1
Most of the people already know the concept of Drive-In with a result of 70% saying yes. So
we can assume that even of the non-existence of the Drive-In people already know what it is.
15
Figure 2: Question 2
In this question we have 86% people that approve that watching movies is their hobby, means
that they like to watch movies a lot.
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Figure 3: Question 3
The majority responded “very little” with 35% means that going to the cinema that too
interesting in Djibouti is more interested in something original.
Do you prefer?
Effectifs Pourcentage Pourcentage valide Pourcentage cumulé
17
Figure 4: Question 4
The majority responded cinema with a result of 59% this answer can be motivated by the
majority of people don’t really know exactly the concept of Drive-In.
Table 5: Question 5
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Figure 5: Question 5
39% of people responded as “interesting” and approve the Drive-In as a concept that must
interest more than one.
Figure 6: Question 6
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85% said that if a Drive-In cinema were available in Djibouti they will go which left us with
only 15% that disapprove.
Do you think that the availability of a Drive-In Cinema will be a positive thing for the
community?
Effectifs Pourcentage Pourcentage valide Pourcentage cumulé
Figure 7: Question 7
We have 35% that ‘strongly agree’ that the availability of a Drive-In cinema will have a
positive impact on the community. And 33% that agree on it, so we can see that the majority
of the answers are agreed.
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What types of films do you watch?
7 1 ,0 ,0 58,0
Figure 8: Question 8
People like all the types of movies with a result of 25%, which means that we will not have
problem to diffuse different kind of movies.
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How often do you eat snacks?
Table 9: Question 9
People eat snacks ‘frequently’ with a result of 40% which means that we must invest in
snacks so that people can eat while watching movies.
22
Would you be willing to pay for a drive-in movie with family and friends?
Effectifs Pourcentage Pourcentage valide Pourcentage cumulé
53% responded ‘Yes’ to be willing to pay for a Drive-In movie with family and friends and
28% said ‘totally !’.
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Figure 11: Question 11
48% of the people are willing to pay from 500DJF TO 1000DJF because they will logically
take the cheaper price to profit from this entertainment.
24
Figure 12: Question 12
The majority of the people are teenagers and kids because entertainments are more for young
people, so we have 66% that responded 0 to 30000FD.
25
Figure 13: Question 13
We have a result of 57% that are between 0 and 20 years, which means that this entertainment
interest and concern a majority of young people.
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We have a result of 61% that are females and 38% that are males. We can see that women are
more interested than men.
3. 5 +1 forces of Porter
1
10
6 2
5
0 Series1
5 3
Competition in the industry: Competition is low because there are no specific similarities
businesses that are similar to mine.
Potential of new entrants into the industry: Even cheaters have people that cheat on them
so they can be other copycat entrepreneurs.
Bargaining power of suppliers: It’s moderate because I have 2 suppliers so I can switch to
another one or even buying from the market if there is a problem with the suppliers.
Bargaining power of customers: Customer impact is extremely high because I cannot run
my business without my clients.
Threat of substitute products: Low because we are not proposing products but services so it
is difficult even never to find a substitute.
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Bargaining power of the government: It’s a private sector activity it is not related to the
government so it is low.
4. Competitor analysis
i. Competitors identifications
Name: Star Cinema.
Activity: Cinematography.
Sector: Private.
As we mentioned earlier in chapter 2, the different competitors in the market and their
position on the strategy group map, we could see a direct competitor who is the star cinema of
Bawadi mall because it offers a closed cinema but does practically the same activity as ours as
well as the same domain which is cinematography.
The difference is that instead of staying in a room we show our movies under the starry sky
enjoying a nice atmosphere with your relatives.
We have also been able to identify indirect competitors on the market, which are subscriptions
such as Netflix, Amazon or Mega video, which concern the purchase of new films. But as
everything has weak points we can easily get the upper hand on these small competitors. In
the first place Netflix and Amazon are subscriptions not available in Djibouti, most people
borrow the accounts.
On the other hand Mega Video having personally experienced these activities the new movies
is of poor video or sound quality due perhaps to illegal downloading so it is not the good
versions of the movies.
5. Industry overview
The field of cinema broadcasting is very much in demand, especially among young people
who watch a lot of films. Nowadays "movie nights" are very frequent and many young people
organize this kind of activity but unfortunately they don't have a comfortable place to gather.
Small children also love to watch cartoons, which are not only educational but also fun.
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So how often do customers like to watch movies or have drive-in days? So this is an
opportunity to have a large demand in this area as well as the new and never seen in Djibouti
concept that will make people happy and curious.
6. Target market
There is no ideal customer, it is an entertainment granted to everyone for young and old
which widens our area of exercise without focusing on a specific sample. The only difference
in our sample is the difference in film genres. Because the film genres vary in tendency with
the age of the customers:
If they are children they are more likely to come and watch animated films.
Teenagers are more likely to watch action or horror films which are shown later in the
evening than others.
Adults are more likely to watch biopics or thrillers with a lot of suspense.
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Mars 20 100 FD 2000 FD
M&M 20 160 FD 2000 FD
Juice 50 100 FD 5000 FD
Water 50 100 FD 5000 FD
Total 92 050 FD
30
Electric mosquito killer 3 7320 FD 21960 FD
Microphone 1 6598 FD 6598 FD
Extension 3 5000 FD 15000 FD
Box for projector and 1 70000FD 70000 FD
accessories
First-aid kit 1 12000 FD 12000 FD
Public toilet 2 95000FD 190000 FD
Total 5 793 198FD
Labor:
Other expenses:
The FDED has a lower loan than the bank that is normally a loan of 10% but here they
propose with a loan of 2, 5 %.
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General budget for six months:
Expenses Amount Due date Planned Executions Execution Remarque
Finance Permission
mode
1. Materials 92 050 Djf At the beginning Savings, CEO CEO They are the
of the month Love money food that we are
and loan going to sell to
our customers in
our mini carts
for snacks.
VOD Movies 259 200FD Every week Savings, CEO CEO VOD movies are
Love money the movies that
and loan we are going to
buy every week.
2. Labor expenses 1 080 000 DJF At the beginning Savings, CEO CEO The employees
of the month Love money are paid every
and loan start of the
month.
4. Other expenses 1, 437,768FD At the beginning Savings, CEO CEO They are
of the month Love money additional
and loan payments made
to assure that all
is going well or
fixed cost such
as electricity and
internet.
Total 7, 691,248FD
Comment: My initial budget was 8,000,000FD, it is a very huge amount but this project
needs a lot of financing that’s why our biggest challenge is the financing part. There is huge
equipment to purchase but also the land that is very expensive and difficult to afford. I have a
gap budget of 308,752FD which will be used as an emergency budget. The budget is composed
of my savings of 500,000FD, the love money of 3,000,000FD and finally a loan of
4,500,000FD.
Resources needed
Human resources:
- Projection technician
- Stand seller
- Security agent
Logistic: Internet
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Asses needed budget:
Contingency Plan
Shortage in materials
Payment of employees
Break down of machines
Financial study
Intangible assets -
92 050
Materials Djf
5, 577,
Equipment 198FD
544
Other expenses 862FD
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Financial assets 118 638FD
Loan 118 638FD
Total of the
fixed asset 6, 332,748
Current asset
Account receivable -
Note: This table was made according to all the expenses of the first month base.
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INCOME STATEMENT
N (First 6 N (Last 6
months) months) N+1 N+2 N+3 N+4
Revenue
Tickets movies 432 000FD 1 1, 948,000FD 2, 344 ,000 2, 536,000 2,680,000FD
afternoon 1/3 522 000FD FD FD
Tickets movies 816 000FD 1 1, 844,000FD 2, 176,000 2, 488,000FD 2,560,000FD
night 1/3 428 000FD FD
Snacks 2 95 700FD 101 600FD 103 677FD 105 798FD 124 653FD 136 700FD
TOTAL REVENUE 9, 343, 700 3, 051 ,600 3,792,000FD 4, 625,798 5,148,653FD 5,376,700FD
FD FD FD
Cost of goods sold
Purchase of equipment 5 793 198FD - - - - -
Purchase materials 552 300 FD 552 300 552 300 FD 552 300 552 300 FD 552 300 FD
FD FD
Loan 711 828FD 711 828FD 711 828FD 711 828FD 711 828FD 711 828FD
Other expenses 5 561 000FD - - - - -
TOTAL COST 7,618,326FD 1,264,128F 1,264,128FD 1,264,128F 1,264,128FD 1,264,128FD
D D
Gross profit (revenue- 1,725,374FD 1787472FD 2,527,872FD 3,616,670F 3,884,525FD 4,112,572FD
COGS) D
Selling expenses
Gas for delivery - - - - - -
Marketing expenses - - - - - -
General & administrative - - - - - -
expenses
Electricity 6 100000FD 100000FD 200000FD 200000FD 200000FD 200000FD
Internet 15 000FD 15 000FD 30 000FD 30 000FD 30 000FD 30 000FD
Salary 1,080,000FD 1,080,000F 2,160,000FD 2,160,000F 2,160,000FD 2,160,000FD
D D
Warehousing cost - - - - - -
TOTAL EXPENSES 1,195,000FD 1,195,000F 2,390,000FD 2,390,000F 2,390,000FD 2,390,000FD
D D
Earnings before 530 374FD 592 472FD 137 872FD 971 670FD 1,945,525FD 1,722,572FD
taxes (gross profit – total
expenses
Taxes - - - - - -
CNSS - - - - - -
Income taxes (6%) 7 - - - - 116 732FD 103 354FD
Employer contribution - - - - -
(15%)
- - - - - -
Total Income taxes 0 0 0 0 116 732FD 103 354FD
NET INCOME 530 374FD 592 472FD 137 872FD 971 670F 1 828 793F 1 619 218F
D D D
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Note:
1) My revenue are depending on the price of my tickets which are 2000FD per person
and there is only 15 cars of 4or 6 persons (depending of the car) that can be inside the
Drive-In. Which mean that we have 15 cars with 4 people for each maximum with a
total of 120,000FD per day and if they switch, we will have less cars on the afternoon
such as 8 or 9 cars of 72, 000FD so we will have a total of 192,000FD per day
maximum for the whole day.
2) We did estimation of how much a group of people can buy snacks and according to
the estimation of Bawadi mall snacks frequency. Basically each person buy at least 3
times snacks or buy a ratio that is equal to three times straight means that instead of
buying three time consecutively they buy it at the beginning totally.
3) Every year customers are becoming more and more big even some people came to
watch without their cars and make some kind of picnic or other came with their pick-
up cars and make picnic in the behind of the cars.
4) The loan of the bank is always paid one month after receiving the cash so in our
revenue we have the credit and then the next month we will began the repayment with
the revenue generated from the activity. This process is under the first column because
it is in the first 6 months that we have the loan but at the same time revenue from the
activity, basically the loan was taken to purchase all the equipment and the land that
are very expensive. And we have also the savings and the love money. All the initial
budget
5) The other expenses are expenses that are paid the first months so they are all the
installations and the shipments from the port.
6) Electricity in Djibouti is paid every two months.
7) Incomes taxes are paid 3 months after starting the activity.
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Amortization table:
In years:
Note: The amortization table was done in euros because we used a calculator software and the
calculation was done by years because we will have a huge amount if we do it monthly
knowing that it is a global result of 120 months.
37
a. Communication strategy matrix
Communication is a very important phase because what better way to get things done and
avoid problems than to communicate. Communication is crucial, especially among
employees, and an effective communication system must be established between them so that
they can work better while respecting the steps and procedures.
a. Brainstorming
We hold meetings in which everyone takes the floor and gives their opinion on a given point
or problem. This is a way to show employees are considered in the company and that their
opinions count knowing that thinking everyone and giving different opinions on behalf of
everyone can make the company better.
This is why for every problem we organize meetings where we bring all members of the
company together to find a solution.
38
Chapter 3: Management and development of the SME
a. Planning
a. Steps
Planning is the most important step in any business start-up. It is a way of following steps and
procedures to be followed in order to make the process efficient and practical.
Step one: Do a market survey to analyses the needs of the consumers and identify a need that
will be profitable, original and practical. I did a study on a general population, that is to say
that there is no targeted market; it can concern children, adults, elderly and men/women.
Step two: set up a business plan to have a general idea of the budget and the expenses it can
entail.
Step three: Find a reliable and sufficient source of funding. Having made personal savings,
especially this was not enough; we were forced to turn to bank loans which will be repaid
with a guarantor and in installments.
Step four: The purchase of a plot of land as to make a drive-in cinema a spacious place where
cars can park is necessary, together with stands for eating and public toilets in case of
emergency.
Step five: Competitor research is an important step as we try to study our enemies and watch
out for them not noticing us or not having an entry into the market. Identify our biggest
competitors by analyzing their activity, their sales and what they offer to their clients, without
forgetting the small competitors who can develop and impose themselves if we turn our backs
on them.
Last step: the purchase of the materials necessary for the beginning of our activity and to be
able to open the doors. This also includes our human resources but also other parallel
expenses such as the necessary work on the site.
39
b. R.A.C.I
40
Clean the place and making Employ CEO CEO All
preparation and distribute posters. ees
2. Organizing
We will dispatch our tasks in different weeks so that we can have an effective schedule to
assure that everything is getting on the right way and the right time.
Schedule:
Task Week
1 Market study Week 1
2 Distribution on the internet Week 1
3 Gather data & analyzing them Week 2
4 Making a bank account and getting Week 2
loan from bank
5 Searching for a land and employees Week 2
6 Dealing with suppliers Week 3
7 Preparing budget Week 3
8 Buying land Week 4
9 Selecting employees Week 5
10 Buying materials and equipment Week 5
11 Making social medias and website Week 6
12 Transporting Airscreen for the ship Week 7
13 Installations of toilets, electricity Week 8
and enclosure
14 Clean the place and making Week 9
preparation and distribute posters.
15 Opening Doors Week 9
Task Starting Ending Week Week Week Week Week Week Week Week Week
day day 1 2 3 4 5 6 7 8 9
41
Market study 03/01/21 03/01/21
Distribution 04/01/21 07/01/21
on the internet
Gather data & 10/01/21 10/01/21
analyzing
them
Making a 11/01/21 11/01/21
bank account
and getting
loan from
bank
Searching for 12/01/21 14/02/21
a land and
employees
Dealing with 17/01/21 19/01/21
suppliers
Preparing 19/01/21 21/01/21
budget
Buying land 24/01/21 26/01/21
Selecting 31/01/21 02/02/21
employees
Buying 03/02/21 04/02/21
materials and
equipment
Making social 07/02/21 11/02/21
medias and
website
Transporting 14/02/21 16/02/21
Airscreen for
the ship
Installations 21/02/21 25/02/21
of toilets,
electricity and
enclosure
Clean the 28/02/21 03/03/21
place and
making
preparation
and distribute
posters.
Opening 04/03/21 04/03/21
Doors
Week 1
TDB Weekly
42
Team Seven person
Market study
Making the survey on Google form
Reception of full answers
Making on SPSS
Task to do Task Task Assig Starting Ending Tools Resour Task Reso Rema
description report ned date deadline needed ces execu urces rques
to and to s needed tion – alloca
supervis to progr tion
ion by accom ess
plish
the
task
Market study Research No one Ilwad 03/01/21 03/01/21 Compu Human OK Ok Done
study on the ter
theme and
searching
for type of
questions to
ask
Making the Making No one Ilwad 04/01/21 04/01/21 Compu Human OK OK Done
survey on survey on ter Money
Google form Google
forms and
share on
social media
Reception of Getting the No one Ilwad 06/01/21 06/03/20 Compu Human OK Ok Done
full answers number of ter
answers
needed such
as 120
answers
Making on Making the No one Ilwad 07/01/21 07/01/21 Compu Human OK OK Done
SPSS analysis on ter
SPSS and
43
getting the
tables of
datas
Tasks Week 2
Days Day 1 Day 2 Day 3 Day Day Day 6 Day 7
4 5
Market study
Making the survey on Google form
Reception of full answers
Making on SPSS
Week 3
TDB Weekly
Task to do Task Task Assign Starti Endin Tools Resource Task Resou Remar
descripti report ed to ng g need s needed execut rces ques
on to and date deadli ed to ion – allocat
super nes accompli progre ion
vision sh the ss
by task
Get in Searching No Ilwad 17/01/ 17/01/ None Human OK Ok Done
touch with for good one 21 21
new suppliers
44
suppliers that can
deliver
my needs
within
specific
times
Reception Getting No Ilwad 18/01/ 19/01/ None Money OK OK Done
of all one 21 21
materials needed
from stuff from
suppliers suppliers
Tasks Week 3
Days Day 1 Day 2 Day 3 Day Day Day 6 Day 7
4 5
Get in touch with
new suppliers
Reception of
materials from
suppliers
45
Put in place budget
in business plan
Week 9
TDB Weekly
46
Task to do Task Task Assign Startin Endin Tools Resource Task Resou Remar
descripti report ed to g date g neede s needed executi rces ques
on to and deadli d to on – allocat
superv nes accompli progre ion
ision sh the ss
by task
Clean the Cleaning No one Every 28/02/ 01/03/ Mater Human OK Ok Done
place and the place one 21 21 ials
making and
preparation making
some
arrangem
ent
Distribute Distributi No one Every 02/03/ 04/03/ Mater Human OK OK Done
posters ng with one 21 21 ials
employee
the
posters to
inform
our
opening
Putting Putting No one Every 04/03/ 04/03/ Mater Human OK OK Done
stands for the foods one 21 21 ials
foods stands and
with the equip
food ment
received
from the
suppliers
Ready to No one Every 04/03/ 04/03/ None Human OK Ok Done
Opening welcome one 21 21
Doors customers
Tasks Week 5
Days Day 1 Day 2 Day 3 Day Day Day 6 Day 7
4 5
Clean the place and
making preparation
Distribute posters
Putting stands for
foods
Opening Doors
47
NOTE: Till the opening we don’t work in the week-ends so that’s why our planning are only
in five days’ work weeks. The work on the week-ends will began when we will open the
doors so that customers can profit from their free time with their family.
3. Controlling
The control part is a very important part because it is a way to know the sequence of the
activity. The control allows managing the employees and the good functioning of the
business, to go into more details it is about the tasks to assign to each employee. Moreover,
controlling the quality of our service is crucial because what better way to deliver a quality
service to our customers.
Tickets
1 248 000FD
Snack
48
95 700FD
Budget
8, 000,000 FD
EXPENSES
552 300 FD
Materials
Equipment 5 793 198FD
Loan 711 828FD
4. Leading
In the early stages, as a CEO I have to motivate my employees so I can attend to achieve my
objective. My vision at the very beginning is to ensure the start of my business, to have a
good image and make a good impression from the very beginning.
I will motivate my employees so that they can do a good job and reflect their enthusiasm and
satisfaction to the customers. But there will be strict rules to follow and limits not to exceed.
Because being a leader in the eyes of your employees is important to show the rules and good
manners created within the company. Communication is a very important way in the
association of a team or a group of employees, because it is a way to solve the sources of
problems very quickly before any strong exaggeration and exchange.
49
It is very difficult to find qualified employees for a job, so they need full time assistance and
control of every job they do, such as checking if the tasks have been done correctly, checking
if they assimilate the work they are assigned or the use of work tools.
5. Staffing
Putting the right person at the right place is very difficult than it looks because we must find
the best person that fit that position of work and that can do the tasks in an effective way.
Regulations
Hiring procedures
50
testing if they are able to make a good work
Newbies They will be accompanied along there test
period
Compensation
Benefits for employees They will fully benefits from the reward
systems in case of a high performance of the
activity.
Insurance Benefit from medical insurance such as
CNSS in Djibouti.
Confirmation:
51
Yes NO
Signature
Confirmation:
Yes NO
Signature
Confirmation:
Yes NO
Signature
52
Name: Kadra Ibrahim
Confirmation:
Yes NO
Signature
Confirmation:
Yes NO
Signature
b. Reward system
The reward system is a way to motivate the employees to achieve the organizational goals of
the company. Reward systems can be expressed in a different way depending on each
company and which type of reward they offer to their employees such as bonuses, gifts or
grateful expression.
2. Bonuses
The bonuses will be given to who got the employee of the month repetitive times but also the
one who has make surplus working hours in another words the one that work the most.
3. Holidays gift
53
In holidays such as Eid they will receive gifts or homemade food shares knowing that we are
a team and a family. Or gifts for employees who have kids knowing that Eid is basically a
holiday for kids.
c. Management style
If we start with a very quick definition, management style is the style with which one should
manage employees while achieving the company's objectives.
As a CEO I have to lead my employees and tell them what to do and what not to do. It is true
that leading your team is difficult, finding the best and most suitable way is also difficult.
The management style I practice in my team is consultative because the consultative style is a
way to keep the trust of our employees, to have a stable relationship with them without
exceeding the limits.
It will be a way for me to consult them, to listen to them and to understand what they have to
say but also to have their opinions on a decision but the last word is mine. I want to have
everyone's opinion on something but any judgment or change to that thing is in my power.
This is a way of having a healthy relationship that can be reflected in their approach or
meeting with our clients.
1- Growth plan
1. Original concept.
2. A range of services
54
3. Pricing strategy
4. Accessible place, easy to come and facilitated for cars.
5. Online booking services.
6. Demand less time to build and not complicated/
Weaknesses:
1. Lack of competition: there are no other companies that propose the same specific
service.
2. Willingness to spend on those attractions
3. Pandemic: covid-19
4. Recent movie diffused earlier for the pandemic
Threats:
1. Weather risk
2. Restrictive licenses.
3. Noise complaints from neighbors.
4. Cars restrictions.
Goals: To have enough customers to pay the employees and cover the loan from the bank.
b. Year three
S.W.O.T
Strength:
1. Monopole activity
2. Diversification of services
3. Customers attractiveness
4. Strategic place for people
5. Pricing strategies such as promotions or buy three and get fourth for free
Weaknesses:
55
1. High cost: demand a lot of costs and expenses.
2. Low number of employees for many customers
3. Traffic cars
4. Small land for many cars
5. Reputation risk
Opportunities:
1. Lack of competition
2. Willingness to spend from customers
3. Pandemic of covid-19
4. Customer awareness of the activity
Threats:
1. Restrictive licenses.
2. Noise complaints from neighbors.
3. Cars restrictions.
Goals: To get an important benefits to be able to have a salary as a CEO but also try to have
secure money.
Mission: To attract more customers and make them aware counting on the WOM.
c. Year five
S.W.O.T
Strength:
1. Monopole activity
2. Recognition
3. Diversification of services
4. Customers attractiveness
5. Strategic place for people
6. Pricing strategies such as promotions or buy three and get fourth for free
56
Weaknesses:
1. Employment creation
2. Willingness to spend from customers
3. Pandemic of covid-19
4. Customer awareness of the activity
Threats:
Goals: To secure enough money to be able to open another Drive-In bigger, equipped for
many customers and modern
Mission: Open bigger and modernized Drive-In for customers so that they can be able to
come whether it’s surbooked or not.
d. Year ten
S.W.O.T
Strength:
57
1. High cost: demand a lot of costs and expenses
2. Old: People are looking for innovation, the concept is becoming very viewed and
boring
3. Surbooking
4. Other entertainments appearance
Opportunities:
1. Employment creation
2. Willingness to spend from customers
3. New movies each week
4. Customer awareness of the activity
Threats:
2- Growth ambitions
Every development and change requires ambition and will. Every company wants to increase
its profits and gain market share very quickly over time. We will have two ambitions which
are to become a giant in the market but also to be smarter.
1. Growth ambition of becoming bigger:
Having your own land to practice your activity is good but is it enough?
Because it's a small space, we can't take a maximum of people. That's why we have plans to
expand but rather to move to another location and open a new Drive-In. The old one will still
be available and renovated if necessary, but the new one will be bigger, more modern and will
be able to hold a maximum number of people.
58
2. Growth ambition of becoming smarter:
Everything loses value over time and people lose interest very quickly if there is no novelty,
because in order to attract customers and keep them, it is necessary to keep them loyal and
offer them novelties. That's why we are thinking of creating a new entertainment channel, i.e.
setting up new entertainment with a new concept, of course, in order to attract new customers
and keep the old ones. New things mean happy customers. We will try to approach
entertainment inspired by Western ones and continue to be copycat entrepreneurs.
59
Section 3: Challenges and opportunities to sees
In this section we will look at the biggest challenges in the industry, then at potential
emerging opportunities, and finally at the exits plans.
1- Challenges
Every company faces many challenges that are difficult to overcome. It is like in our case
which is a new business with a new concept and unknown by the customers for the moment.
So there is a big risk that people don't like this concept or are not aware of its originality and
the good it can do as entertainment.
The biggest issue is the source of funding, because it is very difficult to create a Drive-In with
only 500,000FD savings knowing that only the screen costs more than 500,000FD which is
quite difficult. Then taking a bank loan requires a lot of procedures and supporting documents
as well as the rates including high repayments.
The second challenge is the weather as preparing an outdoor event in an open air venue is
very risky as the cost of making some kind of roof to protect us from rain is too expensive and
will lose the notion of an open air cinema. The difference between the normal cinema and the
closed cinema is that the Drive-In is completely open, so the weather has to be predicted all
the time at least a minimum for the safety of the customers and the employees.
After the Drive-In I would like to open an Escape room, which is a room where teams have to
search for clues in the room in order to escape. It's a game of speed, intelligence and
brainstorming that is also very instructive and helps develop areas of the brain. The sessions
will of course be innovative and the traps will change often.
3- Exit plans
Sometimes things don't work out as planned or as well as we imagined, that's why we need to
have backup plans.
In this kind of situation I will liquidate all my assets in order to be able to pay the remaining
salary for the rest of the days or months worked by my employees and to pay off the totality
60
of my bank debt. This is the best solution to adopt because reinvesting in a business that is not
working in vain would make us lose even more money or if we were to invest in new
entertainment would require even more financing and yet another bank loan when we already
have one in progress. So the best solution would be to pay off the debts and generate the rest
of the money.
Conclusion
Entrepreneurship is the act of carrying out an activity of which one is the initiator, as shown
by its etymological meaning. The dictionary indicates synonyms such as to begin, to attempt,
to commit to the verb to undertake. Three actions verbs that are perfectly define the meaning
conveyed by this term.
Indeed, as the initiator of a project, it is thanks to the entrepreneur's action plan that the
activity can begin and move forward. He is also the one who takes the most risks by starting
an activity whose only guarantee is his creativity. Entrepreneurship also means making a
commitment, both to the partners, reassuring them that the project in progress is a good idea,
and to the employees, convincing them that the company's durability will provide them with
stability in their positions and ensure their career development.
From a personal point of view, being an entrepreneur is advantageous because this happiness
hardly seems comparable to that of a company director who passionately practices his
profession within his own structure. Freedom is the number one factor in deciding where,
when, how and with whom. But also being an entrepreneur is a major advantage in gaining
experience and self-confidence (thanks to the efforts translated into successes, which will
enhance the entrepreneur and those around her). And finally, as an entrepreneur, you have the
advantage of being able to set your own remuneration, according to your needs.
However, being an entrepreneur can also come with disadvantages that are difficult to
overcome. The first is financial insecurity, which is a recurring and sometimes permanent
threat that must be anticipated (...). And the accounting, tax and administrative constraints can
give the entrepreneur a terrible headache.
As a result, the time spent, no more 35 hours, hello 50 hours (or even 65 hours in rush
periods) which will lead to solitude or even alone in the face of the difficulties and stress
linked to your activity and your status. Finally, we can also mention that starting up a business
is an extremely time-consuming and stressful stage, and as an entrepreneur you encounter the
problem of financing; it will not always be easy to convince financiers to invest in your
project.
61
Appendix
Questionnaire:
1. Have you heard of the drive-in concept?
- Yes
- Yes
- No
- I don't go at all
- Very little
- Once in a while
- Often
- A regular
4. Do you prefer?
- Drive-In
- Cinema
- Not interesting
- Neutral
- Interesting
62
- Very interesting
- Yes
-No
7. Do you think that the availability of a Drive-In Cinema will be a positive thing for the
community?
- Strongly disagree
- Disagree
- Neutral
- Agree
- Strongly agree
- Comedy
- Romance
- Action
- Science fiction
- Drama
- Thriller/Police
- Documentary
- Animation
- Adventure
- Horror
- Biofilm
- Historical
63
- All
- Not frequently
- Neutral
- Frequently
- Very frequently
10. Would you be willing to pay for a drive-in movie with family and friends?
- Never!
- No
- Neutral
- Yes
- Totally!
- 500 to 1000FD
- 1000 to 2000FD
- 2000 to 3000FD
- 3000 to 4000FD
- 4000 to 5000FD
- 0 to 30000FD
- 30000 to 60000FD
- 60,000 to 90,000FD
64
- 90000 to 12000FD
- 0 à 20
- 20 à 30
- 30 à 40
- 40 à 50
- 60 and over
- Male
- Female
65
Our
website
66
Poster
67
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74
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