QF is owned by Seojun. Seojun is a sole trader who repairs and builds wooden fences. Most of his customers own houses with gardens in city X. Seojun is an entrepreneur who has an aim to be rich. He set up QF two years ago to fulfil his aim and he set himself the following objectives: • to make $1m profit within 5 years • to have a 20% market share in city X within 5 years. Seojun has made some progress towards his objectives (see Table 1.1). [Table 1.1: Financial and market share data for QF] | | Year 1 | Year 2 | Year 3 (forecast) | |---|---|---|---| | Total revenue | $120000 | $240000 | $480000 | | Direct costs | $70000 | $110000 | $150000 | | Indirect costs | $20000 | $40000 | $80000 | | Market share in city X | 2% | 4% | 8% | Seojun's target market is house owners with medium to large gardens. Most houses in city X have a garden. Promotion is important to Seojun, because the market for fence building and repairs is very competitive in city X. Most customers book QF's services by telephone, but there is a growing need for online bookings. The business is forecast to continue to grow. Seojun has decided to employ two new workers. He has written a job description (see Table 1.2). [Table 1.2: Job description] | Job title: Fence builder | |---| | Required: As soon as possible | | Salary: Based on age | | Qualifications: A-Levels are desirable but not essential | | A workman is required to build and repair fences for a growing local business called QF. Full training will be provided. Experience of building and repairing fences is essential. Must be fully physically fit and under the age of 25. |