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Strategic Entrepreneurship - Example

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The paper "Strategic Entrepreneurship" is a wonderful example of a report on management. Coffeeville is one of the largest coffee shops in Sydney with a chain of 3 coffee shops placed strategically in the cities Local Government Authorities. The chain of coffee shops is well managed and offers a variety of coffee menus from the finest coffee Arabica coffee alongside other beverages…
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Extract of sample "Strategic Entrepreneurship"

Running Head: Managerial Report Managerial Report Name Institution Date Contents Contents 2 Project plan 3 1.1.0. Introduction 3 1.2.0. Business rationale and the justification of the project 3 1.3.0. List of stakeholders and their rights, duties, and responsibilities 4 1.4.0. List of resources, their availability 5 1.5.0. Risk analysis and management 5 Coffeeville Project plan 6 2.1.0. Introduction 6 2.2.0. Objectives 6 2.3.0. Location 7 2.4.0. Competition 8 2.5.0. Capital 8 2.6.0. Complementary foods 9 2.7.0. Design 9 2.8.0. Management and staffing 9 2.9.0. Suppliers 10 2.10.0. Marketing the shop 10 Project report 11 3.1.0. Introduction 11 3.2.0. Objectives 12 3.3.0. Activities 13 3.3.1. Securing capital for the expansion of Coffeeville to Banks town 13 3.3.2. Renovating the newly acquired venues to create a cozy and friendly striking environment 13 3.3.3. Purchasing equipment for the new 13 3.3.4. Hiring of new staff for the project 14 3.3.5. Securing agreed memorandum with suppliers 14 3.3.6. Marketing the Coffeeville franchise 15 3.3.7. Launching the Coffeeville franchise to the public 15 Risk management Plan 17 The risk assessment checklist 19 Project launching activity plan 20 Project Expansion budget 21 Projected sales 22 Project plan 1.1.0. Introduction Coffeeville is one of the largest coffee shops in Sydney with a chain of 3 coffee shops placed strategically in the cities Local Government Authorities. The chain of coffee shops is well managed and offers a variety of coffee menus from the finest coffee Arabica coffee alongside other beverages and assorted pastries. The coffee shop has the prospect of expanding its franchise to Banks town Local Government Authority and maintains its objective of offering the best quality fast food service to its customers. 1.2.0. Business rationale and the justification of the project The firm has the capacity to expand its business franchise to the above mentioned cities because it possesses adequate financial strength thus being able to finance its expansion internally. In addition, Coffeeville has a positive reputation for the adherence to offering the best customer services. The firm has a history of loyalty to its customers. The firm has conducted surveys in the areas and identified the need to set up a fast food company to meet the needs of the growing working population given the high influx of investments in construction and manufacturing industries in the cities. The expansion of the firm into the cities gives it an upper class as the coffee and other food products are cheaply available logistically. 1.3.0. List of stakeholders and their rights, duties, and responsibilities Customers and the local community are the most important stakeholders. Other stake holders of the firm include the staff, service providers, the suppliers, the franchise group owners, the local Government authority and the government. The customers and the local community are the vital stakeholders as they bring their money and buy the food. The suppliers provide the firm with logistical support and the availing goods and products that the firm uses to make meals for the customers. The staff provides the services needed by the customers by making meals, washing of dishes and taking of orders from the customers (Ferrell, 2002). In addition, the staff provides the leadership and innovativeness at the firm that sustains the loyalty of the customers. The owners provide the finances and direction the firm is to take. They also provide the motivation intrinsic and non-intrinsic that sustains the workforce. The government and the local authority provides an enabling environment through which the business thrives. This includes the provision of security, water, and other social amenities. Lastly, the service providers provide repair and maintenance services to the firm and ensure the firms operations operate accordingly. Other stakeholders that are identified by Coffeeville include the banks, shareholders and other creditors who provide financial support to the firm and its customers. 1.4.0. List of resources, their availability A SWOT analysis was conducted and realized that the firm boasts of a stable financial base that has made it possible for the firm to hire adequate and trained staff as well as lease out a venue to conduct the business which will meet the needs of the customers. The new franchises will consist of 1 store manager and an assistant manager, 2 shift supervisor, 1 chef and 4 assistant chefs, 4 baristas and 4 waiters. The company staff has to be skilled in the making of different coffee blends, customer service skills and sales techniques. The chefs and assistant chefs are to be skilled in the operation of the advanced coffee blenders and dispensing machines in addition to the other electronic gadgets that are aimed to increase efficiency and good service delivery. Moreover, the company has updated information system that aims at supporting the firm’s business operations. A detailed plan of the requirements and their budget implications in outlined in appendix 1. 1.5.0. Risk analysis and management An intensive risk assessment to identify and setting up a management system for the risks is to be conducted. This will follow 5 key areas which included: (Schaper and Volery, 2004) Identification of the hazards Identification of persons at risk Identification of the risk controls An establishment of the control points Establishment of corrective actions Verifying if the HACCP is in good and working condition Setting up of the records Coffeeville Project plan 2.1.0. Introduction The expansion of Coffeeville to Banks town will see it serve mainly the busy passersby and office workers in the nearby busy industrial and trading center. The firm intends to offer coffee and other fast foods in addition to other oriental snacks. The shop also intends to sell its trade mark parked rich Arabica coffee to its customers in addition to the traditionally blended coffee liquors. Other beverages like tea, fresh juices, soda and other soft drinks will also be on the café’s menu: (Schaper and Volery, 2004). 2.2.0. Objectives Secure capital for the expansion of Coffeeville to Cobar and Banks town Renovate the newly acquired venues to create a cozy and friendly striking environment Purchase equipment for the new Hiring of new staff for the project Secure agreed memorandum with suppliers Market the Coffeeville franchise Open up the Coffeeville franchise to the public 2.3.0. Location The Coffeeville shop is located along the busy industrial avenues of Cobar and Banks town. The venues are strategic as there is an absence of coffee shops despite the growing population of workers and investors in the areas. The location is ideal as it is located near the city’s emergency services including the fire rescue department and a hospital. The busy location is expected to provide a stream of customers especially the busy workers who will not have to travel long hours back home or to far restaurants as the coffee shop is placed strategically and can be accessed with ease by persons from most of the offices and business parks in the region (Schaper and Volery, 2004). In addition the business will target the passengers as they alight or board their passenger service vehicles as it is near the eventful public transport center. Lastly, Coffeeville coffee shops are made with uttermost standards that will enable their customers feel comfortable and relaxing as possible. The shop environment offers a serene environment that people are able to spend time other than their home or work. The venues are fitted with ample spaces able to offer occupancy of up to 20 people and fitted with wireless internet communication system thus able to accommodate persons who would prefer to hold meetings in a more relaxing environment (Schaper and Volery, 2004). 2.4.0. Competition The firm expects stiff competition mainly from the nearby tourist restaurants and resorts but the firm’s unique menu and competitive prices will be able to counter the competition. In addition, Coffeeville is strategically placed giving it an upper advantage over the other competitors. The region on the other hand has playing grounds for children and ample parking space for motorists thus being able to accommodate the customers effectively. The variety of the oriental dishes being offered by the firm is able to compete intensively with the other firms (Wickham, 2004). 2.5.0. Capital The firm has a solid finance base but will however source for funds on credit from its shareholders that will be able to cushion it against any eventuality. The firm also intends to utilize some of the credited finances to purchase more coffee and tea dispensing machines to meet the projected customer demands. Further additional finances will be used in the training and orientating of the new staff on the firms procedures and activities. Raising capital from the shareholders is more economical as the funds to be returned will not accrue much interest rate as compared to the rates in the other financial and crediting institutions (Wickham, 2004). 2.6.0. Complementary foods An intensive survey into the identification of the complementary foods to accompany the coffee in the region was done by the firm. This is because the coffee accompaniments differ from communities. Coffeeville is to explore other coffee blend menus that have been successful mainly in Italy, Mexico and UK since most of the investors and workers in the area have an origin in these areas. The menus will be able to give them a feeling of home away from home (Wickham, 2004). 2.7.0. Design Coffeeville coffee shops are designed in the modern Italian café bar style which makes it appealing to customers. The coffee house design by themselves is a marketing strategy as they skillfully attract customers who want to have a taste of coffees of more specialty. The shops have a striking cozy atmosphere with digital surround piped music and playing venues for children of all the ages equipped with modern toys and safety personnel. The shops have sections that can accommodate up to 20 persons for a meeting fully enabled with fast loading fiber optic internet. The areas are child friendly as they are not allowed mixing with persons having coffee liquor as a section for coffee liquor drinkers is cordoned off (Moi, 2001). 2.8.0. Management and staffing The new franchises will consist of 1 store manager and an assistant manager, 2 shift supervisor, 1 chef and 4 assistant chefs, 4 baristas and 4 waiters. The company staff has to be skilled in the making of different coffee blends, customer service skills and sales techniques. The chefs and assistant chefs are to be skilled in the operation of the advanced coffee blenders and dispensing machines in addition to the other electronic gadgets that are aimed to encourage efficiency and good service delivery. In addition the company has updated information system that aims at supporting the firm’s business operations (Moi, 2001). 2.9.0. Suppliers Coffeeville has identified suppliers who include coffee farmers who would supply the m with fresh farm produces to be prepared and availed to the customers on a daily basis. The suppliers supply have signed contracts and memorandum of understanding to provide the firm with the produces for a period of one year pending renewal based on their efficiency and observance of health conditions according to the Australian Health Law (Moi, 2001). 2.10.0. Marketing the shop Coffeeville will purpose to provide appropriate marketing strategies in ensuring the consumers are well served. The shop from history has put emphasis on the product quality. The firm will purpose to endeavor to provide coffee mugs with nutritious and rich in its aroma. The firm endeavors to create a third place from home and employment environment that has a uniquely relaxing atmosphere and experience. This will ensure that the customers long for a moment to be in the venue. In addition, the firm will ensure to offer services that will be satisfying to the customers. The services provided will ensure professionalism right from the entrance till the last coffee drop. This will ensure that the customers experience the Coffeeville uniqueness and aspirations to meeting their needs. Coffeeville will set up an updated website that will not only inform the consumers on their services and products but also encourage them to express their experiences at Coffeeville. The site will also inform the prospect consumers on the shops products and their prospects. In addition to this, the firm will ensure that the site is easily accessibly and friendly to use. The firm will endeavor to create strategic partnership as this has proved in the firm’s history to increase sales. The firm will skillfully make innovations to add up products on to their menu. This will ensure that different flavors are added onto the menu and other products that the shop offers. Lastly, Coffeeville will market its brand name by utilizing a variety of mediums. This will include: the use of the website, decorated mugs with the firm’s brand name on it, flyers, posters, branded t-shirts, visual media, audiovisual media, social networks and electronic bill boards. Much emphasis will however be paid on the word of mouth and the high quality service offered by the shop to speak for itself. Project report 3.1.0. Introduction Coffeeville is one of the largest coffee shops in Sydney with a chain of 3 coffee shops placed strategically in the cities Local Government Authorities. The chain of coffee shops is well managed and offers a variety of coffee menus from the finest coffee Arabica coffee alongside other beverages and assorted pastries. To date, the Coffeeville boasts of serving a total of 6000 cups of coffee, 2000 cups of teas and other accompaniments to approximately 8000 customers a day. To meet this target, the coffee shop also provides free delivery services and outside catering to 25 industrial offices in Sydney. The coffee shop has the prospect of expanding its franchise to Banks town Local Government Authority and maintains its objective of offering the best quality fast food service to its customers. 3.2.0. Objectives The objectives set to be achieved during the expansion process are Securing capital for the expansion of Coffeeville to Banks town Renovating the newly acquired venues to create a cozy and friendly striking environment Purchasing equipment for the new Hiring of new staff for the project Securing agreed memorandum with suppliers Marketing the Coffeeville franchise Launching the Coffeeville franchise to the public 3.3.0. Activities 3.3.1. Securing capital for the expansion of Coffeeville to Banks town Coffeeville was able to secure a total of $300,000 from the stakeholders and the asset savings. The money enabled the franchise to be able to secure an ample venue in the busiest section of Banks town city that will. The capital enabled the firm to purchase new items for the kitchen and staff as well as the hiring of new staff and the purchase of new cosy furniture. In addition to this part of the money was utilized to market the franchise prior to its launch (Schaper, M. and Volery, 2004). 3.3.2. Renovating the newly acquired venues to create a cozy and friendly striking environment A total of $5000 was used to remodel the facility. This included the mounting of a classy counter and modern kitchen settings and painting the room with colors that gave the venue an Italian look. This was essential as the outlook of the firm was able to act as a marketing strategy in itself. A total of $95620 was able to set up the counter area and the manager’s office which also included the purchase of an ultra modern safe and cash deposit boxes. The remodeling also included the securing and mounting of fire fighting equipments and an ultra modern security system. The firm had to secure the services of a fire and property risk management technician in the mounting of warning signs and the designing of the isolation area for the gas cylinders. 3.3.3. Purchasing equipment for the new The firm was able to purchase new cozy furniture and kitchen materials. The materials had to be modern as they had to be efficient in the serving of the anticipated large number of people. Items that were bought among others included; 2 refrigerators, 4 micro wave machines, 4 espresso coffee machines, tea urns, tea blenders, and many other kitchen materials. 3.3.4. Hiring of new staff for the project A total of 17 new workers were hired by the firm. This included 1 manager and an assistant, 2 shift supervisor, 1 chef and 4 assistant chefs, 4 baristas and 4 waiters. The company staff has to be skilled in the making of different coffee blends, customer service skills and sales techniques. The staff is expected to serve the firm up to the period when it will have maintained its peak before an additional number is added to meet the needs of the customers. The firm intends to hire 5 more workers on temporary basis to assist in the heavy workload if need arises. The new staff was later given an orientation in to the activities and objectives of the staff. It was vital to orientate the staff as they had to be conversant with the use of the availed machinery and had to comply with the rules and regulations of the firm 3.3.5. Securing agreed memorandum with suppliers The firm secured tenders with firms who agreed to supply coffee and tea to the firm for a period of one year. An additional two firms were contacted and will be delivering office and other kitchen and food materials on a daily basis for a period of one year. The suppliers are to be paid every month and delivery notes are to be kept to maintain the accuracy. The firm manager and the assistant are to ensure the accuracy in this. 3.3.6. Marketing the Coffeeville franchise The marketing of the franchise ran all through from the 4th week to the sixth week. The firm sourced for the services of marketers who developed flyers and banners for the purpose. The flyers were distributed to the surrounding industrial and commercial offices as there were our main targets. The firm also utilized the social networks to market the franchise especially to the youth who also formed a sizeable crowd. Much emphasis however will be given to the consumers for their testimonies of the place will be able to reach far many persons. To attain this, the firm will embark on the giving of quality services to the customers for them to market us based on the unforgettably good experience. 3.3.7. Launching the Coffeeville franchise to the public The launching of the franchise was done on the 8th week. The franchise owner and other branch managers were in attendance. The first 200 customers were served free coffee and other accompaniments of their choice. A total of 800 persons were served on the first day. The number is expected to grow to 1500 by the end of the month as the company targets the industrial and commercial offices. In conclusion, the expansion success was successful as Coffeeville has continued to experience a growth in customer base in the last month. The firm now serves a total of 1400 persons on a daily basis and a delivery supply of 200 persons per day. The number of families has increased as the firm has had to operate during the weekdays. The firm project a sharp increase in the sales as the customers increase and the possibility of hiring more staff as the existing ones are being overwhelmed. The firm will be able to pay back the money it borrowed from the stake holders in a month’s time. N/B The risk management plan, project launching plan, project budget and the projected sales are on appendices 1, 2, 3 and 4 respectively. References Ferrell, O. (2002). Michael D. Hartline and George H. Lucas. Marketing Strategy. Orlando: Harcourt, Inc. Moi, A, (2001). Marketing Effectively. New York. Dorling Kindersley. Wickham, P. (2004). Strategic Entrepreneurship. Essex, Pearson Education. Thompson, A. (2003c). Understanding the proof of business concept. Perth, Best entrepreneur. Schaper, M. and Volery, T. (2004). Entrepreneurship and small business: A pacific rim perspective. Milton, John Wiley and sons. Appendix 1 Risk management Plan To avert property damage and loss of valuables, Coffeeville will embark on securing valuables including cash by securing the m in the most appropriate manner. The firm will purchase a safe into which the valuables are to be kept. The safe will only be accessible to the manager and the assistant. The cooking hood channels are to be cleaned once in every six months. The management will inspect to ensure that the oils used in any deep frying machines are regularly changed. This is to avert the eventuality of old oil reigniting and causing fire. This is to be done twice in a week as it will also ensure the meals served to our customers are of quality standards. Coffeeville is also to put an alarm system into effect to detect and give signals in case of an intrusion. All the electric equipment is to be inspected by a suitability qualified persons monthly. This is essential particularly to the coffee, tea, washing and microwave machines as failure of thermostat and other high temperature controls are a main cause of fires in the kitchen industries. In addition, the supply of gases should be isolated from he main building and the head of the kitchen staff should ensure they are turned off by the close of business every day. All the firefighting equipment is to be mounted and their quality assessed every week by a fire fighting technician. The fire extinguishers are to be mounted strategically to allow easy access. A fire suppression system is to be mounted to assist in the detection and fighting of fires in cases of an emergency. The entrance and exits to the Coffeeville are to be well lit and specious with provision of anti trip stair and tile surfaces. The floor surfaces are to be kept clean at all times. The management should ensure that worn out tile are replaced immediately. All the broken and worn out equipment in the wash rooms are to be repaired. The remodeling should ensure that the stair cases are fitted with hand rails and two risers. Emergency exits are to be open and accessible at all times. Emergency lighting systems are to be installed and illuminated exit signs are to be installed by a qualified and registered technician to facilitate easy movement incase of an emergency. The kitchen is only to be accessed by the kitchen staff and the access facilities should be kept clear. The area should be without any liquid spills at all times. All spills are to be cleaned immediately and all the flammable materials that are not to be in the kitchen should be cleared at all times. The risk assessment checklist Coffeeville fire safety check list Yes No Cleaning of the filters of the cooking hood in the last two weeks Filter hoods professionally cleaned in the last six months Replacement of oils in the deep fryers every two days Servicing of the electronics every month Isolation of gas supply system Installation of a fire blanket in the kitchen Installation and servicing of chemical fire extinguisher every month Installation and servicing of electrical fire extinguisher every two weeks Regular servicing of all the fire extinguishers in the venue Customer and other public fire safety Yes No Safe and effective exit and fire safety zones Safety of internal amenities and floors No entry of entrance to customers into the kitchen Regular cleaning of all soils establishment of wet floor signs regular servicing and inspection of furniture Evenly and spacious distribution of furniture in the venue compliance with the food safety requirements Procedures of cash handling Yes No Are the cash handling procedures documented Are the cash handling procedures available to relevant staff Are their cash limits to be handled at any given time Is a safe available Are the takings and the floats secured in a safe after working hours Do you bank after every 2 days Electronic and physical security Yes No Are security grill fitted on all concealed exits Is the security alarm system monitored by a licensed company Are the external and internal security detection devices mounted and fictional Appendix 2 Project launching activity plan wk1 wk2 wk3 wk4 wk5 wk6 wk7 wk8 Rent payments for the venue X Remodeling of the premises X X Purchase of the kitchen materials X X X Installation of security system X X X X Installation of fire safety systems X X X Installation of security system X X Hiring of staff X X Marketing X X X X Staff orientation X X X X X Launching of the franchise X Payment and acquiring of legal authority X Payment for health certificates X Appendix 3 Project Expansion budget Requirements Start up expenses Number of items Amount per item Total amount per item Legal fee 1 1200 1200 Stationery 1 940 940 Marketing fee 1 3000 3000 Consultants 1 2000 2000 Insurance 1 2000 2000 Rent 12 650 7800 Remodeling 1 5000 5000 Salaries 17 30,000 coffee supplies 1 1500 1500 Tea supplies 1 700 700 Espresso machine 4 6000 24000 Tea blending machines 4 350 1400 Dish washing machines 2 400 800 Cutlery 2000 Orientation training 1 1200 1200 Office supplies 287 Coffee grinder 4 200 800 Food service equipment 18000 Storage facility 3720 counter area facilities 95620 Refrigerator 2 4000 8000 Retail supplies 1800 Coffee filters 7900 7900 Contingency 1 3000 3000 Total in Australian Dollars $ $222,667 Appendix 5 Projected sales Sales Forecast Year 1 Year 2 Year 3 Coffee beverages 352,000 425,987 542,986 Coffee beans 87,000 172,924 202,987 Pasteries 146,000 165,000 225,765 Total in Australian $ 585,000 763,911 971,738 Read More
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