Analyzing Customer Behavior and Logistics Management

This assignment involves analyzing a simulated business scenario, providing detailed responses to questions related to customer notifications, location analysis, total distance assessment, charges listing, goods handling, delivery initiation, payment processing, order fulfillment, customer satisfaction, feedback solicitation, and farewell messages. The scenario highlights key aspects of running a logistics company, including managing tensions between new and existing business models, using the business model canvas in operator's business plans, and assessing economic feasibility of HCPV power plants. The responses require applying mathematical modelling, analysing big data analytics, and exploring the feasibility of struvite recovery processes for fertilizer industries.

A68943 BUSINESS
DEVELOPMENT PROPOSAL

Executive Summary
Business plan proposal is made for the firm which will be engaged in the business of
logistics to provide huge variety of groceries and related items for customers for achieving
profits. The business will acquire 9000 square feet in Malta for starting its business operational
activities in the best manner possible. Online order will be placed on mobile app by customers so
that they will be provided with ordered items within 3 days from order placed. This will provide
them with higher level of satisfaction in effective manner. The headquarter of firm will be in
Birgu which is the biggest city in Malta. In addition to this, since, Malta is the smallest country
in the world, nearly demand of all customers could be fulfilled without any difficulties.
It can be said that Logistic Manager will be responsible for providing clarity to
employees with regards to duties and roles, they have to perform. Moreover, for imparting
training also, all-round development programs would be organised so that desired productivity
may be accomplished in a better manner with ease. Training will also be provided to delivery
boys for getting familiar with local routes and how to provide deliveries within time for
maximising satisfaction level of customers in the best manner possible. Moreover, charges
cannot be fixed as it will be based on the distance travelled by delivery boys to offer
commodities to customers on their doorstep. Thus, adequate services will be imparted for adding
value to customers.
The overall BDP (Business Development Proposal) has been made for evaluating the
factors and conducting market research which will be helpful for Beetel warehouse to
accomplish set objectives in a better manner. In relation to this, organisation feasibility, market
feasibility, financial and product feasibility are being undertaken for assessing whether business
will be able to enhance its position in the market of Malta and attain desired market share. On the
other hand, risk assessment has been conducted which shows that Beetel warehouse would be
able to mitigate risks of operations, financial, human resource and market risks in the best
manner possible. Furthermore, critical success factors are being bifurcated into internal, external
and interactive which shows that firm will be able to survive for long in the market.
The marketing mix has been produced in accordance to the nature of firm's products with
the help of which marketing strategy will provide greater amount of sales starting from early
years of operations. Moreover, it can be said that market penetrating strategy will be

implemented in order to attain attention of customers for availing goods and services from firm.
Due to lower prices of groceries, they will be attracted to firm and it can attain good customer
base. On the other hand, Business Model Canvas has been drawn showing elements of tasks
which will support business in accomplishing profits in effective manner. Thus, it can be said
that business will be able to attain profits and desired market share as market seems to be
feasible for it.

Table of Contents
CHAPTER 1 - INTRODUCTION...................................................................................................1
CHAPTER 2 - BUSINESS CONCEPT...........................................................................................4
CHAPTER 3 - FEASIBILITY RESEARCH...................................................................................6
THE BUSINESS MODEL.............................................................................................................16
THE BUSINESS PLAN................................................................................................................21
THE INDUSTRY, COMPANY & PRODUCTS..........................................................................21
THE MARKET..............................................................................................................................21
COST / VOLUME / PROFIT ANALYSIS...................................................................................22
MARKETING PLAN....................................................................................................................24
DEVELOPMENT PLAN...............................................................................................................32
THE MANAGEMENT TEAM......................................................................................................34
OPERATIONS PLAN...................................................................................................................34
BUSINESS SUSTAINABILITY & RISK ASSESSMENT..........................................................36
IMPLEMENTATION SCHEDULE..............................................................................................39
FINANCIAL PROJECTIONS.......................................................................................................40
REFERENCES..............................................................................................................................47

CHAPTER 1 - INTRODUCTION
The logistics business is one of the higher revenue generating sector which is involved in
providing better services to customers. Logistic company offers storage and transportation
services to businesses. They specialise in providing services in international and national
transportation of services and goods via shipping, air freight, trucking etc. Furthermore, they also
offer warehouse for storing of goods for short time prior to transportation to their final
destinations in the best possible manner (Aperte and Baird, 2013). Logistic business is highly
profitable sector and competitive one as anybody who imports goods into country or
manufacture any type of product requires services from a logistic company which provides them
to transport their goods from one place to another in effective manner.
Beetel warehouse containing huge variety of products in their storage area. It has
acquired new 9000 square feet in Malta for dealing in logistic sector in the best possible manner.
In relation to this, grocery products required by people in daily life. Home delivery of goods will
be provided to customers on their online purchase. This means that online purchase of
commodities can be done by customers with ease. The rationale of choosing logistic business is
to provide goods to consumers in an timely manner to them and attain economic driver in the
best possible manner (Bogetic, Pejovic and Osorio-Rodarte, 2013). This means that people who
will make online order of grocery products will be provided with faster deliveries and reach on to
them within stipulated time.
Maximum time of 3 days will be required to deliver to products to them after ordering
Malta is one among the smallest country in the world. This is required to arrive at good quantum
of profits and people will get satisfaction up to a high extent. The business concept will be taken
into consideration so that faster services may be provided to customers. Moreover, seed funding
for the new venture has been taken.
Terms of Reference
Business development proposal for Beetel warehouse is designed to-
 Outline new business concept
 Assessing existing Position and Readiness for new business
 Stating assumptions upon which business development proposals and projected financial
statements are based
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 Preparing adequate research for assessing the feasibility of business concept
 Producing business model with well-defined resources requirements and constraints
 Completing business development plan for new venture and requirements of expected
financial outcomes for shareholders for next three years
Approach
The proposal has been prepared for the business in carrying out new business
opportunities for Beetel warehouse so that it may be able to accomplish stated objectives.
Essence of concept statement is taken and feasibility researcher is being undertaken. From the
positive findings of feasibility study completed, creation of a business model for showing how
business will create value and then produce sustainable cash flows and profits (Kryvinska and
et.al., 2013). From this perspective, business plan has been developed and intended to work for
three years for giving higher and positive return to shareholders by generating good amount of
return on investment.
Actionable Assumptions
 Demand of market has been underlined for preparation of specific business model.
 Business environment in Malta's Birgu area where Beetel warehouse is located remains
good despite of economic downturn.
 Investment and funds will be made available with budgets being prepared and overdraft
facilities from banks.
 Preparation of warehouse will be managed by appointed consultants and architects.
Timescale
The time scale is required so that business may be started and operations can be
effectively developed and designed for forthcoming periods. This proposal is made for new
business venture which is start-up and follow through for starting three years.
Values and Principles
Values have vital role in accomplishing successful business launch and extract benefits in
the best possible manner. Teamwork is required so that objectives are achieved in a better way.
The values for Beetel warehouse are-
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Timeliness-
Beetel warehouse has the main idea for starting business to provide delivery of groceries
within the three business days (Liu, Wei and Rodriguez, 2014.). Online order will be placed by
customers and company will transport desired commodities within the stipulated time in order to
enhance customer satisfaction. This will be possible as Malta is the smallest country and
warehouse location will be in Birgu.
Reliability-
Reliability of the products and services will be considered in order to provide better
quality of services in an quick manner. It means that reliable and fast services will be offered to
customers so that business may be able to provide services to customers in the best possible
manner. The reliable services at competitive prices will be offered to consumers so that they may
be able to enhance customer satisfaction with ease.
Convenience-
Convenience is provided to customers in order to provide them faster and efficient
services. It can be analysed that convenience will be provided to consumers as groceries will be
delivered to them in time. Furthermore, employees will be committed to work so as to impart
faster services to deliver goods to final destination (Augenstein and Ludwig, 2013). It is the
convenience by which Beetel warehouse will offer quick delivery to customers which will have
better avenues to firm in form of increased sales growth.
Customer satisfaction-
Customer satisfaction is one of the key objective of Beetel warehouse so as to remain in
the market for long run. This means that when customers will be offered with faster deliveries,
they will become satisfied. In this manner, satisfaction level will be effectively accomplished. It
is only the reason for which firm initiates operational activities so that organisation may offer
superior quality services to consumers in effective manner. This builds firm's good amount of
share in the market when enough level of satisfaction to customers' is imparted.
Trustworthiness-
It is another principle which will be followed by business so that customers' may become
loyal up to major extent. Trust will be accomplished within the shortest time period and business
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will gain good share in the market. The trust is important element in the business by which is
able to enhance satisfaction level of customers. It is essentially required that Beetel warehouse
should provide quality services within the time so that more and more customers may get
attracted to it and sales may be up scaled.
CHAPTER 2 - BUSINESS CONCEPT
Business Description
Innovation is the key for understanding what customer's actually wants and how it can be
served to them in effective manner. Beetel warehouse will require paradigm shift in mindset of
people by achieving product innovation. This entrepreneurial business development proposal is
for new start-up which will be engaged in logistic business for delivering grocery products to
customers on their online order with ease. The business is intended to be innovative in Birgu city
of Malta whereby customers will be provided with better services.
Innovation is one of the way for enhancing level of business in effective manner. It is
required that business should innovate the product and then supply the same to customers for
attaining good quantum of profits with ease. Beetel warehouse will provide groceries as
customers will place order on their mobile app and firm will receive notification of it. After
receiving notification alert, groceries will be provided within the period of 3 days. This means
that company will impart faster services to consumers in effective manner in order to gain
satisfaction level up to a high extent. The business will offer groceries to customers in effective
manner through which it will be able to serve customers within the period of three days.
Moreover, with the help of such innovative services by ordering through mobile app, customers
will be satisfied quite effectually and Beetel warehouse will garner good market share in the
market. Moreover, with increased customer base, profits will be attained in a better manner.
The Concept Statement
The Product / Service
The services will be offered by the business in order to attain customer satisfaction. The
warehouse will be located in Birgu which is major city in Malta where online orders placed by
customers would be provided within three days. Grocery products will be offered to customers
and faster deliveries will be made leading to achievement of goals in the best possible manner. It
means that company will offer quick services to customers for increasing their satisfaction level.
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Target Market
The target market is essentially required to be assessed so that business may be able to
attain desired objectives in effective manner (Mazzacano D’Amato, 2014). Furthermore, target
market means to provide products to specific customers in accordance to their needs and earn
good profits with ease. The primary target market of Beetel warehouse will be local customers of
Birgu of all genders who needs grocery products on daily basis such as canned breakfast, baking
items, food and beverages, toiletries, canned vegetables and canned meats.
Value Added
The value added services will be provided to people such as faster deliveries, safer
delivery and no damage to grocery products during transit. Furthermore, services will be charged
on low cost pricing basis as business is a new start-up venture. This will attract more number of
customers to buy products with ease. It is also required that packaging and labelling of products
are provided in order to carry out better and attractive packaging that will enhance customer
satisfaction and they will become loyal to customers. In relation to this, customers will be
provided with better and timely services which will enhance satisfaction level quite effectually.
Specific Features
The specific features involved in providing faster delivery of products is to offer proper
packaging, labelling, prevention from bulk breaking and avoid any damage during transit,
thereby reducing time of delivery up to maximum possible extent. This will influence customers
as loyalty will be increased in a better way leading to establishment of business in the market of
Malta and satisfying needs of customers of Birgu region. Moreover, in order to effectively
reduce transportation costs, the shortest possible routes will be taken in effective manner
(Hayashi, Nemoto and Visser, 2014). Inventory will be handled only in desired manner so as to
minimise wastage of stock and inventory handling costs will be saved quite effectually.
Who Is Involved
The investors, accountants, lawyers are employed in order to provide service in effective
manner. Dean Denzel is a Malta investor which is involved in the field of investing in various
fields. Wendy Christopher is business manager and will work in Beetel warehouse by which
operations will be handled in a better way. Aaron is Malta businessman who will work with
Wendy Christopher for management handling in the best possible manner. This means that all
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personnels appointed will carry out work and ensure that quick deliveries will be made to people.
On the legal basis, bank accounts have been opened along with local accountants are appointed.
The Window of Opportunity
The opportunities are available in abundant quantity but the need is to explore them in a
better way. Beetel warehouse will provide delivery of range of grocery products. Moreover, it
has the potential to diversify its business to more regions or even go for international deliveries
so as to maximise operational activities and scale up operations (Halpern and Regmi, 2013).
Timing and scale of potential business have been explained in further paragraphs-
The Timing
The business will be opened as site selected of 9000 square feet have been purchased for
consideration in effectual manner. In relation to this, Beetel warehouse will be operating without
payment of leases or rents, which will be beneficial for organisation as expenses will be saved
with ease. Hence, timing of business will be suitable and good amount of profits will be garnered
in effective manner. It means that business will provide better services to customers.
The Scale of Potential Business
Beetel warehouse will start its operations in Birgu city of Malta. It is essentially required
to attain good growth over next three years which seems to be crucial as it will decide how much
business has the potential to scale up its operations (Ward. 2017). Scaling up of business
operations have many advantages such as access to wider financing options from financial
institutions involving greater amount of potential in effective manner. Moving into new service
lines so that good range of product portfolio may be accomplished in a better way. Thus, Beetel
warehouse could diversify its service lines to more regions of Malta for generating higher
amount of profits quite effectually. Business have also the potential to increase ability for luring
additional staff by whom efforts can be scaled in a better way. This will provide people with high
standard services and consecutively leads to reduction in overall costs. In simple words,
economies of scale will be accomplished by organisation.
CHAPTER 3 - FEASIBILITY RESEARCH
Feasibility is termed as capability of business in effective manner. It is used to determine
whether allocated tasks will be accomplished by carrying out assigned tasks in a better way. By
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effectively conducting business feasibility research, it provides clarity regarding strengths and
opportunities of a business idea in a better way (HERMANN and BRANDT, 2013). Hence, it is
utmost important for conducting feasibility research so that business may be able to analyse
proposed venture in effective manner. Market feasibility research is required before entering
into market so that cost of failure may be minimised with ease. The feasibility research has been
undertaken to carry out “gap in the market and “market in the gap” for effectively mitigating
risks of failure of business.
Logistic Industry Attractiveness
The logistic business is one of the competitive industry and nearly every businesses
requires for transportation of services in effective manner. Moreover, location of Birgu is
growing all sectors and as a result, industry life cycle is at maturity stage. Thus, business in
industry remains sustainable. It can be analysed that there are no warehouses around the location.
In simple words, full range of logistics including packaging, labelling and transportation of
goods in effective manner. This means that competition in proposed location is low and business
will be able to accomplish profits and improve services of handling it to services in effective
way. On the other hand, barriers to entry are high as logistic sector is small in Malta and it can be
analysed that close substitutes are not prevailing in the industry. Moreover, bargaining power of
customers are low because of absence of sectors.
Market Attractiveness
Aim- To assess usefulness of adopting logistics and warehouse business in Malta- A study on
Beetel warehouse
Objectives-
 To analyse effectiveness of Malta market for Beetel warehouse to achieve successful
start-up
 To assess the factors by which logistics market is fruitful for Beetel warehouse To recommend Beetel warehouse to attain market share in Malta
Research Questions
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Q1. What are the factors that leads to influence Beetel warehouse to start business in logistics
sector?
Q2. Do logistics sector will be favourable to Beetel warehouse in accomplishing market share?
Research Methodologies
Research Type-
There are different types of research which are used for conducting analysis in a better
way and attain desired outcome with ease. Two widely used techniques or methods used are
qualitative and quantitative used by researcher for generating results. In quantitative method, all
the numerical data, facts and figures are used for gathering appropriate data and further serve the
base for conducting research (Vaioleti, 2016). On the other hand, qualitative method is used to
gather theoretical aspect of study by carrying out motives, feelings and as a result, data type is
selected. In present research, researcher has used qualitative method so as to analyse the position
of new business whether it will be able to perform good in Birgu or not. Furthermore, focus is
made on the research aim and objectives.
Research Approach-
The approach of research is used to provide effective direction to overall research in the
best possible manner. In it, research hypothesis is formulated and then acceptance or rejection is
done for carrying out result of hypothesis. There are two methods which are widely utilised by
researcher in getting proper approach in effective way. It can be analysed that inductive and
deductive are the two approaches (Vera and Fabian, 2016). Inductive is used for making
observations and after observing elements, hypothesis is effectively tested. Moreover, theories
are proposed at research process end. While, deductive approach is used to make analysis of the
research in effective manner by formulating general theory to particular one. In present research
about the market, researcher has used inductive approach so as to make observations of
viewpoints of respondents.
Research Design-
The research design is one of the important element of research as through this,
researcher is able to execute the plan with ease by following the schema of plan in effective
manner. It can be analysed that there are two mostly used research design such as descriptive and
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exploratory. Descriptive research, as the name suggests outlines that deeper analysis about the
topic of research is done and useful insight is generated. Well-mannered structure is
implemented with the help of which, deeper analysis can be made and research objectives could
be met (Humphries, 2017). While, exploratory research design is a method in which subject
under the study is explored in a manner by which new insights may be gathered. It can be
assessed that in present research, scholar has taken exploratory research design for exploring
facts about the market of logistics in effective manner.
Research Philosophy-
Research philosophy is used to develop and attain knowledge about the topic in hand. It
entails belief about different ways by which data can be collected for analysing results in the best
way possible. There are two mostly used research philosophies which are interpretivism and
positivism (af Wåhlberg, 2017). Interpretivism philosophy is utilised for making out
interpretations of data in effective way so as to gather knowledge about the market quite
effectually. While, positivism philosophy means that positive knowledge is based on natural
phenomena and experience. In relation to this, researcher has used interpretivism philosophy for
interpreting the results.
Sampling-
Sample is used to take only specific population which are often representative of whole
population in effective manner (Fletcher, 2017). In relation to this, it can be identified that
sample is taken 13 respondents in which 8 consist of potential customers and remaining 5 are
owner of business for generating data. It can be interpreted that primary data has been conducted
with the help of Focus Group Discussion from respondents and viewpoints are gathered.
Data collection-
Data serve as the basic need for conducting research so as to attain desired outcome quite
easily and reliably. There are two methods or sources of data collection which are used for
collecting data as the purpose of research. Primary and secondary sources both are utilised for
present research in effective manner. Focus Group Discussion has been used which is good way
for gathering people of similar backgrounds for discussing research topic and impart their
viewpoints with ease. While, secondary data is also used which is already collected data used for
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any previous research by scholar (Alvesson and Sköldberg, 2017). It can be used for serving the
purpose of current research. Hence, books, journals, internet articles and related reliable sources
are used.
Data analysis-
Data analysis is another crucial part of collected data to provide results. In present
research, the results have been accomplished which shows that there is a gap in the logistics
market which needs to be fulfilled. Thus, Beetel warehouse will effectively fill the gap by
providing quality goods to customers in order to enhance customer satisfaction with ease.
Primary Research
The primary research has been conducted in a manner so that market attractiveness of
logistic sector can be analysed with ease. Focus group research was conducted among potential
customers and owners of logistic business.
Potential Customers- 4 Focus group discussions of 8 respondents
Owners- 1 Focus Group discussion of 5 respondents
The concept of results of testing reveals that respondents of both groups confirms there is
a gap in the market in form of better way. Moreover, potential customers have major enthusiasm
as they will be attracted to business (Cepolina and Ghiara, 2013.). Hence, meeting needs of
customers is essential and as a result, business will effectively deliver grocery products so as to
attain desired objectives in a better manner. Market is attractive and business will achieve
avenues in a better way.
Organisational Feasibility
The feasibility of starting business is required so that business may flourish in its starting
phase. The group of investors have revealed that logistic business is suitable and more regions
can be gathered in effective manner as business seems to expand to all regions of Malta in
coming years. The skills set of employees is required so that business may be able to accomplish
set objectives in a better way (Cepolina and Ghiara, 2013). Energy level, efficiencies and
productive work will be appreciated from employees as they are source for revenue generation in
the business up to major extent. On the other hand, from behavioural and work ethic perspective,
logistic new venture seems to be feasible. In addition to this, firm determination, dedication to
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succeed will be the backbone of positive business culture. Risk appetite entails due to financial
aspect of the venture.
Financial Feasibility
Financial resources are required to attained so that with the help of financing, business
will be able to carry out activities in the best possible manner. It can be analysed that financial
resources required for new venture start-up will be required which will indulge amount for
equipping warehouse, renovation of the same. On the other side, working capital will be required
for meeting day-to-day expenses in effective manner. Requirement of labour costs, utilities and it
will be provided with all these costs. It is also expected that shareholders will attain return on
investment over a 3-year period time in the best way possible (Ingaldi and Jagusiak-Kocik,
2013). Moreover, it might exceed cost of capital and as a result, good source of earnings will be
achieved by company in effective manner. Once the customer base grows and business concept
is proven, more regions of Malta and nearby locations will be handled in a better way. Hence, it
can be assessed from financial feasibility that business will succeed in its operational activity in
the coming future.
Product feasibility
The feasibility of the product is required to be made so that product may effectively be
successful in the market. However, if any shortcomings are there in the product, then changes are
made thereof and product is successfully placed in the market for satisfying customers with ease.
It can be analysed that grocery products are of great demand in market of Malta. Since, it is the
smallest country in the region, Beetel warehouse can effectively manage demand of customers.
Through online order system, customers will place the order and request of delivery will be made
to company to offer product in effective manner (LaPorte, 2017). The charges of delivery will be
placed in accordance to the delivery made to customers.
According to feasibility analysis of product, Beetel warehouse need to gather information
so as to assess the feasibility or develop business case in effective manner. First of all, it is
analysed if there exists market of grocery products, then only company may be able to grab
market share. The business will be able to grab opportunities in effective manner by providing
the goods to customers as per their orders made on online basis. It is required that market
research may be initiated which provides way for company in attaining desired objectives in a
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better way. It will provide business the way for which it may be able to meet the demand of
public and will form business model accordingly (Szollosi and Baranyi, 2016). The proper
analysis will be then conducted whether product will be successful or meet needs of target
market. Thus, it can be said that firm will carry out this process and make product feasibility
with ease.
Industry Feasibility
The industry feasibility is a broader term involving overall trend in the market which will
be met by company in effective manner. The overall appeal for the commodity in of market is
being proposed with ease (Wu and et.al., 2016). It can be said that business may be able to form
industry analysis on three basis such as industry attractiveness in the best manner possible. As
the name suggests, industry attractiveness means that primarily determining Beetel warehouse's
feasibility is attractiveness of the sector or industry it chooses. This is essentially required to be
analysed as it serves the basis of performing in the market and make strategies to overcome the
entry barriers if any.
The industry attractiveness has a broader meaning with reference to growth rate. Usually,
major attractive industries have characteristic such as large and growing at a rapid rate, have
much importance to customers, have high operating margins and not low. Another characteristic
is it is not crowded and are fairly not matured market (Rhormens, Pedrini and Ghilardi-Lopes,
2017). It can be said that firm should carry out all these above said characteristic of industry
attractiveness in effective manner. Beetel warehouse will be going to operate in logistics and
warehousing for providing grocery products. This sector has potential growth as competition is
low which makes it profitable and high growth for company. It means that market is in growth
stage and will be able to attain profits with ease. Moreover it is not matured enough which means
that company will be able to offer goods in effective manner to customers and will accomplish
set objectives in a better way. Moreover, it can be said that firm will be able to attain benefits in
market and as a result, desired profits will be attained in a better way.
Market Feasibility
The market feasibility involves capturing the attention of market whether it would be
feasible to company or not. The main characteristics of market feasibility involves market
timeliness and identifying niche market in effective manner (Ciriminna and et.al., 2016). The
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nature of product is involved in identifying the market place of company whether offering of
Beetel warehouse is new to market or not. On the other hand, it can be analysed that firm will
offer services within three days and groceries will be dispatched to customers on online orders
made by them. This offering is new and customers will get delightful experience and also
competencies are low which means that Malta market would be fruitful for firm. Moreover, time
of entry in the market should also be analysed so that barriers may be assessed and strategies
may be developed accordingly (Talavera and et.al., 2017). It can be said that firm may be able to
attain profits as entry barriers are low.
The identification of niche market is also required for completing market feasibility. The
niche market is termed as a place within larger segment of market which represents narrow
group of customers having similar interests in effectual manner. It can be analysed that for new
firm like Beetel warehouse, identifying and selling products to a niche market becomes
extremely important. The reasons for selling to niche market are as it allows organisation to
establish itself in industry without competing against well-established rivals. A niche strategy
help company to effectively attain profits by serving to specific group of customers. This is
evident from the fact that it becomes impossible for new firm to sell to broader market. Thus, in
accordance to this, firm will offer goods to Birgu location and by attaining good share in few
years of operations, it will capture all regions of Malta as it is a small country by which
maximum profits would be accomplished (Amini, Honaker and Noble, 2016).
The Start-Up Capital and The Working Capital Required
The start-up capital is required in order to initiate operations in the best way possible.
Various equipments and machineries, trucks will be purchased so as to timely deliver grocery
products to customers leading to accomplish satisfaction level of consumers. Borrowings from
bank and other financial institutions would be used for starting business. The funding
requirements and working capital for the business is provided below-
Funding Requirement
Particulars Amount (in €)
Motor vehicles (Commercial trucks) 440000
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Furniture and fittings 10000
Office premise furniture 55000
Capital expenses (Other) 16000
Trolleys 4000
Desktop computers 16400
Management software (Warehouse) 2300
Laser printer 3000
Working capital requirement 90000
Total 636700
The above table shows that business will require amount of funds for carrying out start-
up expenses and furthermore, working capital will be needed so that balance between current
assets and current liabilities may be maintained in a better way.
Cash Flow-
Cash flows are required so that business may have adequate amount of cash for meeting
short-term obligations within stipulated time quite effectively. Cash flow statements will be
presented in order to analyse requirements of business and whether it will generate positive cash
flows or not which will be analysed by cash flow from operating, investing and financing
activities. Primarily income will be achieved by making faster deliveries of commodities to
customers on online orders placed by them and as a result, positive balance will be needed to be
achieved ie, cash receipts should exceed cash payments (Sadri, 2013).
The positive cash flow is required to be analysed so that it becomes feasible for the firm
in accomplishing sales in a better way. Moreover, cash is required for managing day-to-day
operations, making payment to suppliers, handling transportation charges, meeting truck
expenses etc. Thus, for meeting such payments, it is needed for attaining positive cash balance.
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Moreover, short-term liabilities will be met and thus, receipts should be more than payments.
Hence, healthy cash flows are needed for meeting requirements.
Estimated Break Even-
The break even is expected to be garner by the business so that it may at least earn profits
at base level and do not incur losses if any in starting operations. Break even is the situation
where no profit no loss is made, however, if sales are less than break even, then losses begin to
arrive which is not feasible for organisation (Yetilmezsoy and et.al., 2017). The break even
analysis falls on the assumption that it is easy to segregate both types of costs such as fixed and
variable. However, it is not true in real world as calculation of break even point becomes
difficult.
Furthermore, another assumption is that fixed cost remains constant without reference to
output which is not acceptable in true sense as if output increases beyond limit, fixed costs tend
to increase. Variable cost per unit also remains at all production level which also not hold true.
Next assumption is that selling price remains same which is not right as demand and supply
never attains balance. Moreover, there is no change in technology and machine breakdown is not
possible. This assumption is also does not work in real business world (Parikh. 2017).
In relation to above analysis, it is expected that from financial projections, break even
will be achieved within two years of business. Moreover, logistics operations will be handled in
a better way by which groceries may be provided to online customers within the stipulated time.
This will ensure that maximum sales are accomplished in a better way and break even point will
then be achieved within starting years of operations and business will be able to attain good
growth with ease.
Cost of Failure
The cost of failure involves attainment of negative cash flow position which will lead to
affect liquidity position of new venture. It is necessary for Beetel warehouse to be patient to
allow regular trade to build up the resources in effective manner. This is required as customers
will not avail services from just starting of one day, but will gradually increase requiring higher
amount of patience (Vivarelli, 2014). On the other hand, financial projections made of break
even are realistic in nature and firm will be able to accomplish desired objectives with ease.
15

The cost of failure is required to be analysed first so that business may be able to be
analysed by the firm particularly new start-up by which it may be able to attain profits in
effective manner and reduction of risks may be attained. It can be said that business required that
market may be analysed in a better way so that failure may be minimised. It can be said that
business should be able to cope up with risks and then initiate operational activities with ease.
One of the main reason for business failure is lack of management expertise in areas such as
selling, purchasing, finance and recruiting skilful employees in effective manner. It can be said
that these costs will be minimised and company will be able to provide effective services leading
to reduction of risk failure.
Results of the Feasibility Research
It can be analysed that results of the business feasibility research seems to be favourable
in terms of organisation, marketing, operational and financial feasibility. There is substantial
confidence among stakeholders that business will flourish in coming years and it is the ability of
business to gain maximum profits since its start-up in the market. Thus, Beetel warehouse will
succeed in logistic sector by garnering profits. It can be assessed from the feasibility research
conducted of various elements such as financial feasibility, market feasibility, industry
feasibility, organisation feasibility and product feasibility, firm will gain good profits and cash
health in starting years of operational activities. Moreover, it can be analysed from market
feasibility that company will offer new way of groceries to people with the help of digitisation
and as a result, within 3 days of online order placed by customers, goods will be delivered which
is quite attractive for them as market has never offered to them.
THE BUSINESS MODEL
The business model is one of the important part of company's operations. The
development of business model has been used to show how the new business will compete in the
market through well-defined structures and customer's relationship for sustaining in market and
earn good quantum of profit in the best way possible. It can be analysed that for effectively
sustaining in market of Malta, Beetel warehouse should be able to perform as per the market
mechanism in order to outreach the rivals and attain the control over the market. Moreover, it is
essentially required that value-chain based approach is to be allowed for business model to
16

emerge has been valuable and essential for new business ventures. This approach is used to
enable better and in-depth assessment of strategic resources for attaining competitive advantage.
It can be seen that business model changes over the time because more innovative value
propositions will be made and as a result, business model changes. Moreover, changes will also
incorporate with reference to target customers and supply chain up to a major extent. In relation
to this, opportunity gap also exists in Birgu for a prospective warehouse and logistic sector which
offers grocery products to people within the shortest possible time. It is required to initiate
change in new business concept and thus, primary research has been conducted highlighting need
for providing better and fast services to customers. In relation to this, feasibility research
conducted shows that Beetel warehouse gives confidence that good amount of money will be
garnered by it in order to capture market.
The business model canvas has been adopted to effectively outlining core strategy for
maintaining sustainability and delivering quality and timely services to customers. This will
enhance satisfaction level of consumers quite effectively.
Key Partners Key Activities Value propositions Customer
Relationship
Segment of customers
 Affiliates
 Logistics
 Network of
vendors
 Transportation
to destinations
 Designing
 Packaging and
Labelling
 Ease of
convenience
 Lower price
 Faster
deliveries
 Quick online
order
processing
 Self-service
 Fully
Automated
service
 Birgu grocery
consumer market
 Women
 Individual
leverage
 Niche market
Key Resources
 Logistics
 Heavy four and
double axle
trucks
 Physical
Channels of
distribution
 Mobile
Application
interfaces
 Affiliates
17

warehouses
 Web and
application
development

 Warehousing
 Distribution
Cost Structure
 Low cost
structure
 Economies of
scale
 IT
infrastructure
 Advertising on
social media
Revenue streams
 Sale of old
assets
 Acquisition and
investment
 Subscription
fees
The above business model canvas is being prepared so as to gain useful insight about the
company's structure in effective manner. The 9 key heads of business model canvas can be
formulated and explained as to analyse how Beetel warehouse will work in the market. The
explanations are enumerated below-
Key Partners-
The key partners are those which describes the way to optimise the operations and
minimise risks of business model in effective manner (Zolnowski, Christiansen and Gudat,
2016). Beetel warehouse will be able to have supplier-buyer relationships in order to have
potential focus on man activity with ease. It can be analysed that firm will have partnerships with
key affiliates, logistics and key vendors so that it may mainly focus on activity by offering
groceries to people in effectual way. This will provide firm with better avenues as it will be able
to maintain better relationships with its key partners which will impart efficiencies in meeting the
demand of public at large. Thus, business will have better relationship with partners.
Key Activities-
18

The key activities are mos important in effectively executing firm's value propositions. It
means that efficient supply chain has to be made by the firm in effective manner for reducing
costs. For Beetel warehouse, key activities include Transportation to destinations Designing,
Packaging and Labelling so as to enhance the services in a better way and provide desired
groceries with proper packaging and labelling so that proper information about the item can be
analysed in a better way by customers. These key activities will effectively influence company's
value propositions in the best manner possible. It means that company will be able to attain
efficiencies by providing quality goods at affordable prices.
Value propositions-
The value proposition is termed as collection of products and services which is being
offered to customers in accordance to their needs and demands (Wang and et.al., 2016). It is the
value proposition of company which distinguishes it from rival businesses. As the name
suggests, value is provided from the services or products being delivered to customers. It may be
qualitative and quantitative. Quantitative as per Beetel warehouse is lower price and ease of
convenience. On the other hand, qualitative value propositions are faster deliveries and quicker
online order processing which means that overall value propositions of company are good and
will be successful in new market.
Customer Relationship-
The customer relationship is to be created by Beetel warehouse by which it may be able
to make the deliveries. There are various forms of customer service assistance including personal
assistance, creating communities and co-creation quite effectually. It can be analysed from the
business model canvas that it will use self-service and fully automated service for contacting
with customers and strengthening relationships. Self-service is opted as customers will place
order online through mobile application by which they may be provided with services on their
self. While, fully automated service will be made and personalised messages will be sent to
people on their previous purchases (Sund and et.al., 2016). This service will be implemented
after few times of operations so that customer's base is strengthened.
Segment of customers-
The customers segment is useful for business as it handles which customers it will try to
seve fro attaining profits. The customer segment for Beetel warehouse as directed in business
19

model canvas are Birgu grocery consumer market, women and individual leverage so that these
segment of customers will be served with ease. On the other hand, niche market will be also be
introduced by company in order to provide quality goods at affordable prices to customers.
Types of customer segments as listed does not involve mass market as firm is a new entrant and
will not be able to cope up with the all segments as it lacks experience.
Key Resources-
The key resources are required for effectively meeting demands of customers. These are
categorised such as physical, human and financial. Beetel warehouse will also require resources
such as logistics, heavy four and double axle trucks physical warehouses web and application
development etc for meeting its resources by which customer's needs may be fulfilled
(Lewandowski, 2016). These are the precious assets of company which provide way to sustain in
the market by providing products. It means that for carrying out work in a better manner, firm
will require such resources and leading to meeting demands of customers.
Channels of distribution-
The distribution channels are another pre-requisite for Beetel warehouse as it will be
engaged in logistics business so that business may be able to enhance its distribution network in
the best way possible. The channels for distribution which will be adopted by firm are mobile
application interfaces, affiliates and warehousing so that company may be able to enhance its
supply to final destination, thereby reducing their time on offering the groceries to customers.
The deliveries will be made within 3 days of time and customers will be satisfied up to a major
extent. Hence, these channels will be adopted by business in getting performance in effective
manner.
Cost Structure-
The cost structure is a segment which describes how effectively company will be offering
goods to customers for satisfying them. It will have low cost structure, economies of scale, IT
infrastructure and advertising on social media channels will be cost structure of the business in
order to attain efficiencies. The low cost structure business model emphasises on reducing all
costs and that too having no frills (Joyce and Paquin, 2016). This means that customers will be
provided with quality goods and services will be made at their doorstep by which they may be
able to attain satisfaction. Thus, stated objectives of Beetel warehouse would be accomplished.
20

Revenue streams-
The revenue streams means the way by which company will be able to attain revenue in
effective manner. It will be generated by business from sale of old assets, acquisition and
investment and subscription fees so as to generate good amount of revenue (França and et.al.,
2017). Moreover, firm will be able to strengthen its services and revenue will be accomplished
by it. This means that company will be able to produce revenue which will be reinvested in
future operational activities in order to attain benefits. Thus, it can be concluded from the
business model canvas that Beetel warehouse will achieve stated objectives and as a result, it will
succeed in Malta market.
THE BUSINESS PLAN
THE INDUSTRY, COMPANY & PRODUCTS
The GDP of Malta surpassed $12 billion in the 2017 and is predicted that it will increase
positively in effective manner. This shows that despite the smallest country in the world, Malta
has good GDP figures and will be maximised in the future. The logistics industry also consists of
growth in future course of action and can be analysed that it will achieve growth in effective
manner (Pozo and Durán, 2018). The new company proposal is to initiate logistics business with
the help of which warehouse will contain all types of grocery products required by public in their
daily life.
The main aim of company is to provide commodities within the shortest possible time,
say 3 days by which firm may be able to attain customer's loyalty and satisfaction level will be
accomplished in a better way. It is needed that logistics industry of Malta has to be analysed so
that perfect well-defined strategies may be implemented in effective way so as to mitigate risk of
failure. Thus, by looking at logistics industry and products which will be offered by Beetel
warehouse, it will accomplish desired objectives in a better way.
Customers have variety of needs for fulfilling the needs in effective manner. It can be
said that firm may be able to meet needs of public and deliveries will be made within stipulated
time. Customers will be offered with groceries and necessary essential products for daily usage
which will provide them with better avenues in effective manner (Hopp and et.al., 2018).
Moreover, Beetel warehouse will offer faster delivery services in order to meet demand of
people and as a result, desired revenue would be accomplished in a better way with ease.
21

THE MARKET
The population of the Birgu market is low and firm has greater level of scope for
enhancing the operational activities and take over the market or capture it, by providing effective
services. Malta is the smallest country and lowly populated with over 475,000 people which suits
company to cover demand of people in effective manner and without much difficulty. This will
provide firm to attain profits and capture good share in the market of daily needs by providing
goods at customer's doorstep within timely manner. Moreover, it can be said that logistics
business will seem to be beneficial for company so that firm may be able to enhance its position
in effectual way (Tokarski, Tokarski and Wójcik, 2017). It can be assessed from the fact that
market is find to be suitable for company as it will be able to capture market by providing quality
services to customers.
The business has purchased 9000 square feet in Malta for setting premises. In addition to
this, business should implement well-defined strategies in order to attract customers. On the
other hand, it is required that Beetel warehouse should provide services to customers so that
business must be able to enhance its customer base with ease. On the other hand, it is required
that market strategy should be implemented so that business may be able to expand its market
share and implement well-structured strategies so as to increase profits. In other words, it can be
said that firm will be able to initiate good operations in the market and as a result, profitability
position would be maximised in a better manner.
COST / VOLUME / PROFIT ANALYSIS
BREAK EVEN ANALYSIS
Particulars Jan Feb March April May
Sales revenue 245000 245000 245000 245000 245000
Fixed expenses 114750 114750 114750 114750 114750
Depreciation 7917 7917 7917 7917 7917
Total amount
of fixed costs 122667 122667 122667 122667 122667
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Variable
Costs
Variable
expenses 110250 110250 110250 110250 110250
Total variable
expenses 110250 110250 110250 110250 110250
Income from
operations 12083 12083 12083 12083 12083
Interest gain
(expense) -6328 -6328 -6328 -6328 -6328
Income taxes
on variable 1611 1611 1611 1611 1611
Net income
after taxes 4144 4144 4144 4144 4144
Analysis
Income
attained from
operations
Contribution
Margin (in %) 55 55 55 55 55
Sales volume
of break-even 223031 223031 223031 223031 223031
Sales volume
more than
21969 21969 21969 21969 21969
23

break even
Net profit after
deducting
taxes
Contribution
Margin (in %) 54.34 54.34 54.34 54.34 54.34
Sales volume
of break-even 237374 237374 237374 237374 237374
Sales volume
more than
break even - 7626 7626 7626 7626
The above table shows that company will be able to attain profits in effective manner.
The data for first five months have been prepared which shows that fixed costs will remain same
irrespective of the output made by Beetel warehouse. The variable costs are also carried out
which implies that business will be able to initiate control over its costs in the best way possible.
It can also be analysed that contribution margin before taxes turns out at 55 % and as such,
business will be able to attain good amount of profits in effective manner. In relation to this,
break-even will be achieved at 223031 amount and sales above break-even will be 21969. In
other way, contribution margin after taxes turn out to be 54.34 % and break-even sales volume is
237374 which means that sales volume more than break-even will be 7626. This shows that
business should achieve break-even within starting months of its operational activities in order to
enhance profit level in the best manner possible.
MARKETING PLAN
Corporate logo
24

The logo of the company shows graphic representation for the business which will
provide them with increased benefits. Customers will be provided with faster services at their
doorstep and as a result, satisfaction level will be accomplished in a better manner. Moreover,
core value, vision and mission are attached with the logo showing identity of the firm in effective
manner.
Vision
The vision of Beetel warehouse is to accomplish growth in all regions of Malta. Putting
smiles on the customer's faces is the main priority for delightful experience in getting services
with ease. Leading logistic solutions will be made and customers will be provided with orders.
Mission
The mission of firm is to enhance the lives of clients by offering them quality services.
Through the variety of items of daily needs, unique value proposition will be imparted to
customers. Beetel warehouse will win appreciation and accolades for 'best logistic solution' for
consumers at Birgu location and best of efforts will be made to lead the market.
Core Values
The core values which will be provided by business for maintaining its market share are
listed below-
Core Values Description
25

First priority to customers At all times and engaged in decisions of business
Consistency In quality of service and keeping promise of quicker deliveries
Teamwork In entire business operations with dedicated employees
Growth To get into all regions of Malta
High Energy Strengthening customer relationship and sustainability for long run
Positive attitude Positive approach to public by skilled workers
Firm determination Dedication towards making deliveries within 3 days
Business Objectives
 To enhance long-term objective by penetrating the market and gaining competitive edge
 To develop relationships with strategic alliances and gaining accuracy in services
 To provide quicker services to people at their doorstep for increased level of satisfaction
 To grow in the market and diversify operational activities to advanced logistics solution
 To become market leader in few years and maintaining customer relationships
 To accomplish positive cash flow within 1 year
Reviewing Business Environment
Strengths
The business has a unique selling point of delivering goods within stipulated time.
Moreover, creditworthiness of the owner is present. Diverse backgrounds and skilful employees
dedicated to achieve productivity. Beetel warehouse has conducted feasibility research with
regards to product, industry, market and related study has been done by which market
attractiveness can be achieved (Sanjaya, 2017). Target customers are also listed in a better way
from which desired sales will be accomplished. Thus, positive outcome is achieved out of
feasibility research showing strengths of business.
Weaknesses-
The main weakness of company is that it will only implement self determined concept
and has not actually experience in meeting demand of public in effective manner. On the other
hand, lack of highly specialised warehousing and transporting with expertise. Another weakness
26

is that small workforce could not meet demand of customers on same days in case of excess
demand in effective manner.
Opportunities-
Opportunities are several for the business which shows that firm will be able to fill the
gap in the market by which company will be able to attain profits quite effectively. No direct
competition is being analysed as rivals are engaged mainly providing logistics solutions to
business clients and few provides delivery to customers (Lima and Baudier, 2017). Well-
constructed business which will provide company with higher growth and delightful avenues in
the best way possible.
Threats-
It can be analysed that there is no explicit threat to Beetel warehouse which shows that
company will gain good amount of profits in effective manner. On the other hand, main threat is
from new entrants as entry barriers are not too harsh and cumbersome. Seeking growth of Beetel
warehouse, new entrants may attract towards this business sector for growth.
Strategic Marketing objectives
Market Penetration
The market penetration is the strategy in which business will attract larger customer base
by providing them quality goods at competitive price. Since, business is engaged in logistics
sector, the deliveries made to customers will be charged in accordance to the distance being
travelled by the transportation trucks. In simple words, Beetel warehouse will implement prices
as per the distance travelled by the vehicle from logistic operations' location for meeting needs of
customers in timely manner. Thus, competencies will be handled with ease by offering services
in a better way to potential customers.
Market Development-
The market development is the strategy in which growth can be attained by business by
identifying and developing better market segments particularly for existing products in the
market (Keane, Cormican and Sheahan, 2018). It is essentially required so that business may be
able to enhance the customer satisfaction by reaching out to new market in need for higher
growth. Moreover, for targeting non-buying customers can also be reached by it and as a result,
firm will be able to enhance its market position by attaining growth in effective manner.
Marketing deliverables
27

External Marketing
The marketing mix for Beetel warehouse is listed below-
Product-
The product is required to be delivered to business after meeting out the marketing
research in a better way. It can be said that firm will store groceries and related commodities in
order to meet demand of customers in effectual manner. It will then provide delightful services to
customers in effective manner. Beetel warehouse will offer services to customers and as a result,
satisfaction level of customers may be accomplished with ease. Furthermore, delivery of goods
will be made within stipulated time so as to enhance customer's loyalty. Thus, by providing all
grocery items and other daily need items of people, firm will gain an edge over the market.
Place-
The place is another important element for company in order to meet the demand of
people. Location is crucial place by which firm may grab good base of consumers and also they
may be provided with quicker services (Foss and Saebi, 2018). Birgu is being chosen by firm as
it is major city in Malta and firm will be able to meet demand of people. Supply chain needs to
be enhanced so that business may provide timely services to public in effective manner.
Furthermore, it can be analysed customers will be conveniently provided services within
stipulated time frame and as a result, stated objectives will be met.
Price-
It is required to quote competitive strategy for pricing commodities. Beetel warehouse is
a new firm which needs to capture market. For accomplishing this, market penetrating pricing
strategy will be implemented which means that company would services at lower prices in
comparison to competitors for gaining their attraction and so that they could become loyal
towards it (Saldaña and et.al., 2017). This implies that price will be charged as per the distant of
destination and varies in proportion to business. This means that market penetrating strategy will
be applied in order to attract market and achieve good amount of profits.
Promotion-
The promotion is one of the important part of company's products so that it may be able
to garner people's attraction. Promotion is much essential for Beetel warehouse as it is a new
start-up and public are required to persuade buying products or avail services for maximising
revenue. The promotional services can be handled through TV advertisements, magazines,
28

newspapers etc. Nowadays, social media marketing is much in trend and firm should opt for it.
Thus, promotional activities will be held by using social media channels such as Facebook,
Twitter, Instagram so as to attain maximum people and make them avail grocery services.
Physical evidence-
The physical evidence is also important for marking its presence in the market. It can be
analysed that for establishing identity, logo of Beetel warehouse is truck passing on the road with
blue colour and written Beetel warehouse on it. Moreover, paints will be made on logo,
delivering vehicles, packaging cartons and office premises so that it is visible to people in
effective manner. Besides this, it will pay attention to brochures, business cards, official
websites, documentation and related things leading to have physical evidence.
People-
People are integral part of organisation and without the availability of desired number of
employees, operational activities of daily nature cannot be performed. Beetel warehouse will
employ 50 workers for starting its venture and will gradually increase number after it succeeds in
the Birgu market of Malta and growth is made by it. For enhancing their skills in a better way,
training sessions will be implemented in order to build their communication skills, capabilities
and knowledge so that they produce maximum efficiency and productivity. Thus, it can be said
that people will produce desired production for firm and attain efficiencies in a better way.
Process-
The process of providing goods to customers is simple for firm. It can be said that
customers will make online order of groceries to firm on mobile application. This request will be
shown on official website of firm which will be secured by password and login credentials and
will be available only to employees in-charge of it. After that, products which are stored in the
warehouse for daily needs of customers will be dispatched to them by proper packaging,
labelling and designing as per their orders. Efforts will be made to dispatch the goods to
customers within 3 days and as a result, delivery will be done to achieve customer satisfaction.
Public relations
It is considered to be important to create awareness and opinions for firm as per
customers. For maintaining relations with public, local PR agency has been appointed for
preparing PR campaign for launching and follow-up will be through 1 month time period. PR is
more essential in comparison to media advertising and will be supported with social media in
29

marketing. Role of Logistics Manager of Beetel warehouse is to enhance relationship with staff
and attains maximum interaction with customers.
Internal Marketing
Particulars (Actions) Year 1 Year 2 Year 3
Developing end to end
customer service
processes for seamless
order processing

Customers service
process for building
service culture

Team work
performance for
building brand
awareness
  
Communicating with
customers and taking
feedback and engaging
staff for addressing
issues for
improvement of
services
  
Staff knows for
achieving Vision,
Mission and
Objectives
  
Reviewing progress of
customer base
  
Resolving issues   
30

instantly and
enhancing services
Interactive Marketing
The interactive marketing is part of marketing strategy which will be implemented and
integrated along with internal and external marketing for providing customers with adequate
level of satisfaction with quicker services and attaining good quantum of customer base in
effective manner (Lu, Goh and De Souza, 2018). This will enhance relationship of Beetel
warehouse with consumers and desired sales will be accomplished. The root for a successful
future of the new venture is nothing but increased total customer experience. It is critical factor
which will entail benefits to firm for its sustainability in the market.
Main focus of all types of marketing efforts is to offer value of goods to customers which
are relevant, meaningful and delightful leading to remembrance of positive approaches in
effective manner. This is the best approach for creating marketing space for Beetel warehouse in
effectual way (Safaei, Farsad and Paydar, 2018). No overlapping of customer's orders will be
made leading to good pace of service for greeting people at their doorstep within stipulated time
to keep promise. On the other hand, it can be said that attention to customers is essential so as to
analyse implicit and explicit expectations with ease.
Physical evidence will be highlighted with concerned colours for enhancing ambience.
For accomplishing this, professional services will be made to customers and necessary training
sessions would be implemented in a better manner. The people as listed in external marketing
will provide services to customers with much skills, expertise by which customers may feel
satisfied in accordance to the services which will increase customer base with ease (Naseri and
Samuelsen, 2018). Recruitment and appropriate selection of candidates from pool of people is
extremely important for maximising efficiencies and providing desired productivity to firm for
increased growth in initial years is required for covering costs and attain higher revenue.
RISK ASSESSMENT
31
Receiving notification from customersAnalysing location of customers Assessing total distance Listing charges

The above diagram represents McKinsey value chain which provides operational layout
of the company starting from order received till delivery is made to people within 3 days. This
will provide customers to attain profits in effective manner as firm will be satisfy their demands
within time. They will become loyal to organisation and desired market share will be attained.
The groceries will be offered within time period and as a result, potential customers will be
targeted and will be provided with goods of superior quality in effective manner.
Cross Functional Dependency
32
Handling goods in trucks Forwarding to delivery boy Initiating payments
Order fulfilled Happy customers Seeking feedback
Farewell Message Continued purchasing from company
Delivering at doorstep

The operational activities are to be attained by the firm which provides efficiencies to
Beetel warehouse in establishing its logistics business in the best way possible. It can be
analysed that front end operations should be interdependent by back end operations (Mocan and
Draghici, 2018). This is essentially required for enhancing customer satisfaction as mutual
interdependency between firm's operations and deliverables to consumers must be handled in an
perfect way. The marketing plan must then integrate with operations plan in order to enhance
services and should be looked after by Logistics Manager.
Marketing Budget
The marketing is extremely important for company so that it may be able to attain
benefits of market. For meeting marketing and promotional expenses, budget is required so that
expenses may not exceed budgeted costs. For effectively conducting marketing, marketing
expenditures amounting to £5000 have been aside in effectual way and contingency funds are
made available for incurring any expenses additionally as well.
DEVELOPMENT PLAN
The project will get complete within 6 months or it can be said that for next 6 months, it
will be handled by Logistics Manager so that operational activities may be achieved. The
development plan is one of the important part of business plan which is required for firm so that
it may be able to attain efficiencies (Muhammad and et.al., 2018). The four elements such as
Design, Development, Testing and On-Stream are listed which provides framework of opening
the warehouse within 6 months and overall development in effective manner. This will provide
firm to deliver services within stipulated time for enhance the services for customers. The
development plan is prepared below-
Development Plan
Months
Particulars Design Development Testing On-Stream
1 2 3 4 5 6
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Signing the contract
Sourcing warehouse
Designing Architecture
Public Relations Evaluation
Supplying equipments
IT Systems and
infrastructures
Drivers on board
Obtaining licenses
Making appointment of
accountants, professionals
STAFFING
Warehouse
Supply chain employees
Delivery persons
SUPPLIES
Wraps and tapes
First aid kits
Eye care
Miscellaneous office
supplies
Material Handling
Safety accessories
Opening
34

Marketing communications
Full opening
THE MANAGEMENT TEAM
OPERATIONS PLAN
The operations plan is required as it provides clarity for engaging in free flow and
seamless flow of goods to customers in order to attain profits by delivering them. The grocery
and related commodities are to be provided to company in a timely manner so that satisfaction
level may be accomplished in a better way without any difficulties (Ding, 2018). The Logistic
Manager is purely responsible for total operational activities from inbound logistics to warehouse
operations, deliveries to consumers and generating sales revenue in the best manner possible. It
is equally important that all points of business operational activities must be touched in order to
add value to business and customer's service by meeting all resources are adequately resourced.
The action plan is listed for Beetel warehouse below-
ACTION PLAN
35

Particulars Description
Supplies The regular supplies in the warehouse is essential so that no dependency
can be made on single suppliers for providing vegetables, groceries. The
supplier will be tied into volume based contract and will be reviewed in
6 months time interval. In the event of any contingent situations, local
wholesalers and vegetables producers in Malta will be approached. This
will make ensure that Beetel warehouse has adequate goods in
warehouse for meeting demand.
Operations Training required in operation processes for enhancing efficiencies are
needed. On weekly basis, monitoring will be done for checking adequacy
of operations processes in start-up stage. Moreover, utilisation of IT
system and infrastructure will help to ensure seamless running of
organisation.
Customer service Training will be required for providing satisfaction to customers from
each and every angle which will make sure that starting from order
placed by customer on online mobile app till final delivery is made to
them, they are satisfied through entire process.
Business Logistics Logistics is important for providing desired services and goods within
stipulated time to customers. For meeting this, weekly plan will be
drawn for making business logistics management effective and making
deliveries to people as per their demand.
Payment
Mechanism
IT system for enabling payments through credit card needs to be
monitored so that secure transfers may be made by customers.
Furthermore, cash related transactions are also to be reviewed and
monitored with more care.
Staff operations Complete schedule will be prepared for staff to make sure that customers
are satisfied up to high extent and they are delighted by the services of
firm. Thus, efficiency and productivity will be accomplished by
36

employees leading to attainment of goals.
BUSINESS SUSTAINABILITY & RISK ASSESSMENT
CRITICAL SUCCESS FACTORS
The following success factors will be applied by Beetel warehouse to remain sustainable
in the long run in market-
INTERNAL EXTERNAL INTERACTIVE
 Team effort
 Supply chain
management
 Operational
management
 Employee engagement
 Worker's satisfaction
 Rewarding staff
 Consistency in quality
services
 Occupational health
and safety
 Compliance with laws
 Market share
 Market visibility
 Market Penetration
 Company's services
awareness
 Marketing
communications
 Competitive advantage
 Addressing situational
factors to environment
 Lower level economic
turbulence
 STP (Segmentation,
Targeting,
Positioning)
 Inclination of
customers towards firm
 Customer service
 Customer Care
 Engaging customers
 Relevance to concept
of business
 Customer Retention
 Customer Loyalty
RISK ASSESSMENT
Type of Risks Description Mitigating Risks
Finance Risk The financial risk can be observed
from the financials that
It is required that risks in the
business should be mitigated in a
37

contribution made by owner's
capital is less in comparison to
long-term borrowings being taken.
This involves risk of repayment of
loan in the instalment to the
concerned party.
better manner. For mitigating
financial risk, Beetel warehouse
will plough back at least 65 % of
profits in business only. This
strategy is opted for first year of
operations only in order to
mitigate risk at least for short-term
in the best manner possible.
Market Risk Market risk means that
competencies present in the
market. It can be analysed that
market of Malta particularly Birgu
is the biggest city in the country
which has rivalries (Kamar, Nasir
and Jaafar, 2018). Thus, Beetel
warehouse has no other choice but
to compete with them for gaining
market share. The market risk also
measures out surface which is
evident from the fact that
wholesalers, retailers and other
parties has in house warehousing
facilities.
For mitigating the risk in a better
manner, small business support
agency for logistics will be seek
for attaining support. This support
will help to effectively attain
marketing strategy for competing
share in the best way possible.
Moreover, greater customer
satisfaction rate will then be
achieved quite effectively.
Human Resource
Risk
The human resource risk is another
one which needs to be reduced up
to a high extent. The risk of the
business will be when it is not able
to hire and select productive
employees and retaining efficient
employees. Moreover, hired
It is needed to effectively mitigate
risk of human resources in a better
manner. For accomplishing this,
strong leadership and effective
learners ship will be pursued.
Through conducting training and
development programs, skills will
38

employees not productive will be
costly for Beetel warehouse to
retain the same.
be acquired by employees. Thus,
human resource risk will be
mitigated quite effectually.
Operational Risk The operational risks are part of
the business and needs to be
analysed. Business may have
constraints with regards to
capacity and machineries. This is
because groceries required special
facilities for storing as it is highly
perishable in nature. There may be
risk of not being efficient because
of lack of IT infrastructure and
advanced logistics software.
The business will purchase
equipment for storing groceries
from getting it spoiled. This will
make sure that groceries are
preserved till customer places the
order. Thus, advanced storage
facilities will be implemented so
that preservation can be done.
Moreover, it will strive for
obtaining and purchasing
affordable technologies for better
efficiencies.
PERFORMANCE MANAGEMENT
The performance management of the company is needed so that desired revenues may be
accomplished in a better manner (Klumpp, Zijm, Heragu and Regattieri, 2019). This will be
fruitful for organisation as it is small business and a start-up which requires dependency on sales
revenue at least for the first five years. The performance will be based on generating revenue and
good profit volumes which will be more than break-even point.
Weekly performance needs to be reviewed so that deficiencies if any, hindering adequate
performance could be removed in the best possible way. Corrective actions will be then taken for
providing effective services to consumers which will be crucial for increasing customer base and
enhancing overall sales of company with ease. Moreover, when break-even has been attained by
Beetel warehouse and positive cash balance is achieved, then firm will introduce performance
reward system for increasing employee morale (Quak, Kok and den Boer, 2018).
39

This will increase existing productivity of workers will be accomplished in a better
manner. It provides clarity that in case of low performing workers, reason behind low
performance will be ascertained and then adequate training and development program will be
organised. By applying this, overall performance of staff will be enhanced in a better manner and
as a result, desired performance will be attained leading to customer satisfaction and increase in
profitability position of firm. By implementing performance rewards system, Beetel warehouse
will be able to achieve desired objectives and as such, more value will be added to services and
customers will provide deliveries within stipulated time.
The profit from the business will be shared with workers on point basis system to all
members of staff on equitable basis. This will maximise their engagement level in work and
employee morale will be achieved. In addition to this, business will achieve desired profits, staff
will be provided with incentives apart from basic salary. Moreover, employee motivation and
morale would be maintained in effective manner leading to create happy customers.
IMPLEMENTATION SCHEDULE
The implementation schedule outlined in Development Plan has been referred to and
schedule for implementation are employed below-
MONTHS
Particulars Pre Opening Opening Post Opening
1 2 3 4 5 6 7 8 9 10 11 12
Operations
continuing from
development plan
Staffing
Soft opening
On stream
Marketing
40

Campaign
Training of staff
Initiating
Monitoring &
Control
Reviewing at
quarterly intervals
Consumer
Feedback
FINANCIAL PROJECTIONS
PROJECTED INCOME STATEMENT OF BEETEL WAREHOUSE
Particulars 2019 2020 2021 2022 2023
Distribution
(revenue) 900000 990000 1089000 1197900 1317690
Storage
(warehousing) 2070000 2277000 2504700 2755170 3030687
Total revenue 2970000 3267000 3593700 3953070 4348377
Cost of Goods
Manufactured
Cost of Goods
Manufactured 1336500 1470150 1617167 1778882 1956770
Total variable
Cost of Goods
1336500 1470150 1617167 1778882 1956770
41

Manufactured
Gross profit 1633500 1796850 1976533 2174188 2391607
Operating
expenditures
General and
Administrativ
e expenses (no
depreciation) 1377000 1419775 1490763 1565300 1643567
Depreciation 95004 95000 95000 95000 95000
Total
operating
expenditures 1472004 1514775 1585763 1660300 1738567
Income from
operations 161496 282075 390770 513888 653040
Interest
expenditure 75936 72148 67736 62591 56588
Profit Before
Taxes 85560 209927 323034 451297 596452
Income tax 23957 58780 90450 126363 167007
Net Profit
after Taxes 61603 151147 232584 324934 429445
PROJECTED BALANCE SHEET OF BEETEL WAREHOUSE
42

Particulars 2019 2020 2021 2022 2023
Current
Assets
Cash and cash
equivalents 37818 427481 723363 1544125 2097298
Trade
receivable 340000 369890 406879 433213 476534
Stock 28298 30785 32042 34116 37527
Total
Current
Assets 406116 828156 1162284 2011454 2611359
Non-Current
Assets
Furniture and
Fixtures 50000 50000 50000 50000 50000
Office
Machinery 50000 50000 50000 50000 50000
Trucks 400000 400000 400000 400000 400000
Accumulated
depreciation -95004 -190004 -285004 -380004 -475004
Total Non-
current
Assets 404996 309996 214996 119996 24996
Total Assets 811112 1138152 1377280 2131450 2636355
Liabilities
43

and
Stockholders'
Equity
Current
Liabilities
Loan taken 100000 100000 100000 100000 100000
Trade payable 172125 374514 411996 877257 964982
Total
Current
Liabilities 272125 474514 511996 977257 1064982
Non-Current
Liabilities
Long-term
borrowings 377284 350788 319850 283825 271560
Other long-
term liabilities 100000 100000 100000 100000 100000
Total Non-
Current
Liabilities 477284 450788 419850 383825 371560
Total
Liabilities 749409 925302 931846 1361082 1436542
Equity
Contribution
by members 100 100 100 100 100
Retained 61603 212750 445334 770268 1199713
44

earnings
Total
Stockholders'
Equity 61703 212850 445434 770368 1199813
Total
Liabilities
and
Stockholders'
Equity 811112 1138152 1377280 2131450 2636355
PROJECTED CASH FLOW STATEMENT OF BEETEL WAREHOUSE
Particulars 2019 2020 2021 2022 2023
Cash flow
from
operations
Net Profit
after Taxes 61603 151147 232584 324934 429445
Adding items
not reducing
cash
Depreciation 95004 95000 95000 95000 95000
Increase in
trade payable 172125 202389 37452 465291 87725
328732 448536 365036 885225 612170
Deducting
items not
increasing
45

cash
Increase in
trade
receivable 340000 29890 36989 26334 43321
Increase in
stock 28298 2487 1257 2074 3411
368298 32377 38246 28408 46732
Cash flow
from
operating
activities -39566 416159 326790 856817 565438
Cash flow
from
investing
activities
Purchase
made of Fixed
assets 500000
Cash used in
investing
activities 460434 416159 326790 856817 565438
Cash flow
from
financing
activities
Proceeds from 500000
46

long-term
borrowings
Repayment of
long-term
borrowings 22716 26496 30908 36005 12265
Cash flow
from
financing
activities 522716 0 0 0 0
Increase/
(Decrease) in
cash -62282 389663 295882 820812 553173
Changes
reflecting in
cash balance
Closing cash
balance 37818 427481 723363 1544125 2097298
Opening cash
balance 100 37818 427481 723363 1544125
Increase/
(Decrease) in
cash 37718 389663 295882 820762 553173
The above financials such as cash flow statement, income statement and balance sheet
has been prepared for the company. By looking at income statement, firm will be able to
generate good amount of profit in the best manner possible. It can be analysed that company will
gain income amounting to 61603 in 2019 which will be increased to 151147 in next year.
Moreover, in 2021, income will reach to 232584 showing enormous growth of company in terms
47

of profits from one year to another. It will further maximise to 324934 in 2022 and at the end of
2023, figure of 429445 will be attained. This clearly shows profitability position of Beetel
warehouse in subsequent years.
The balance sheet also shows that amount of current and non-current assets are more in
quantum implying that position of business will be good and will meet its liabilities quite
effectually. Cash flow statement is divided into three components such as operating, investing
and financing activities. This clearly implies that cash balance of firm will be good as it is
represented by increase in cash. In 2019, increase in cash will be 37718 which will reach 389663
in 2020. Furthermore, 295882 will be attained in 2021 and 820762 in 2022. While, in 2023,
increase in cash will reach 553173. Thus, as per the financial projections, Beetel warehouse will
have good financial health in terms of profitability, liquidity and efficiency.
48

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