Transportation Company Operations Review and Strategy

This assignment provides a comprehensive review of a transportation company's operations, including its organizational structure, key personnel, risk management, legal considerations, service process, plant and equipment, software technology, trading hours, channels of communication, payment types accepted, credit policy, quality control, memberships and affiliations. The financial section reviews the major objectives and financial performance, including requirements for a business loan to purchase new trucks and install lift gates.

Running head: BUSINESS PLAN OF FAST TRACK COURIERS
Business Plan of Fast Track Couriers
Name of the University:
Name of the Student:
Authors Note:

1BUSINESS PLAN OF FAST TRACK COURIERS
Table of Contents
1. Business Plan Summary............................................................................................................3
1.1. The Business........................................................................................................................3
1.2. The Market..........................................................................................................................3
1.3. The Future...........................................................................................................................4
1.4. Strategic Plan Goals...........................................................................................................4
1.5. Organizational Plan Goals.................................................................................................4
1.6. The Finances........................................................................................................................5
2. The Business...............................................................................................................................6
2.1. Business Details...................................................................................................................6
2.2. Registration Details............................................................................................................6
2.3. Business Premises...............................................................................................................7
2.4. Action Plan..........................................................................................................................7
2.5. Products/ Services...............................................................................................................7
2.6. Insurance.............................................................................................................................8
3. The Market.................................................................................................................................8
3.1. Market Research.................................................................................................................8
3.2. Market Targets...................................................................................................................9
3.3. Environmental/ Industry Analysis....................................................................................9
3.4. Your Customers..................................................................................................................9

2BUSINESS PLAN OF FAST TRACK COURIERS
SWOT analysis:.............................................................................................................................10
Competitors:..................................................................................................................................10
Advertising and sales:....................................................................................................................11
Organisational structure:................................................................................................................13
Key personnel:...............................................................................................................................13
Strategies for retaining skills:........................................................................................................14
Risk management:.........................................................................................................................14
Legal considerations:.....................................................................................................................14
Operations:.....................................................................................................................................14
The Finances:.................................................................................................................................16

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1. Business Plan Summary
1.1. The Business
Business Name: Fast Trade Couriers
Structure of Business: Proprietary Limited Company
ACN: 87332690
ABN: 83873326970
Location of Business: 6 Hill Road, Sydney Olympic park, NSW 2127
Date of Establishment: 15/01/2003
Owners Businesses: Publicly Listed Proprietary Limited Company
Important Experience CEO: The CEO of the company has been within the company in the 15
years of the business operations. Before joining this company, he was the CEO of a competitor
courier/ transport company for more than 6 years.
Services/ Products: The services that are offered by Fast Trade Couriers include pickup and
delivery of medium to large sized packages all through Sydney and in the future years the
regional NSW.
1.2. The Market
Target Market: The target market of the company includes small to medium sized
companies, within Sydney and the company is planning to expand its business within regional
NSW, initiating with Newcastle, Wollongong along with NSW based central west region. The

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customers of the company will come back to use all the company’s services due to a 15 years’
history of dependable and cost effective service.
Marketing Strategy: The plan of the company is to expand the comprehensive
marketplace in order to encompass regional areas of NSW. The company has already maintained
a consumer base within Sydney. Moreover, the part of the company’s plan is focused on
expanding within regional NSW and wants to attract previously lost consumers. This might cater
for the time being and this is for attracting lost consumers that could not be catered for that time
as the company did not pick up or deliver within regional NSW. The new marketing plan of the
company is to contact the consumers those are lost previously. The objective of the paper is to
attract new customers; the company will carry out market research in order to reveal new
consumers along with informing them of the impending entry within the region. The reputation
is cost effective and reliable couriers.
1.3. The Future
Vision statement: The vision of the fast track couriers is to regularly grow the business
through expanding the consumer base along with encompassing NSW regional base for the pick
up along with delivery by mid-2018. The company also has a future vision of going national at
the end of 2025.
1.4. Strategic Plan Goals
Strategic Plan Goals: The strategic goal of the company is to develop the business along
with enhancing business profits for over three years through expanding routes to encompass
regional NSW.

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1.5. Organizational Plan Goals
Operational Plan Goals:
The Fast Track Courier Company will:
 Initiate delivery within local NSW in 12 months’ duration
 Enhance sales by 40% over the future three years
1.6. The Finances
Financial Information
Annual sales
Current sales 2017 Estimated sales 2018
$17 million $22 million
Annual net profit
Current net profit (2017) Estimated net profit (2018)
$1.9 million or 11.16% of sales $3.2 million or 14.54% of sales
Increased costs in 2018
Loan repayments Operating costs (fuel, servicing, etc.)
+$200,000 per annum paid back to
the bank for the $700,000 Business
loan.
+$2.2 million for the 10 new trucks
Administrative costs Labour costs

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+$100,000
Licensing/Registration/Insurances
Nil
2. The Business
2.1. Business Details
Products/ service: Delivery and pick-up of medium to large sized packages all through
the Sydney and all in the future years including regional NSW. Demand for the service is
enhancing through 15% per year.
2.2. Registration Details
Business Name: Fast Trade Couriers
Structure of Business: Proprietary Limited Company
ACN:87332690
ABN: 83873326970
Location of Business: 6 Hill Road, Sydney Olympic park, NSW 2127
Date of Establishment: 15/01/2003
Owners Businesses: Publicly Listed Proprietary Limited Company
GST: Registered for GST, 01/01/2004
Doman names: FastTrackCouriers.com.au

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Permits and Licenses: Licensed for attaining the business operation within NSW “with Light
Rigid Trucks that is not beyond 8 tones in weight”. Drivers need to attain at least an “LR”
License.
2.3. Business Premises
Location of Business: The location serves as an office space along with distribution
center that a 3000 sq mt area. The location can be revealed at 6 Hill Road, Sydney Olympic Park.
Lease/ Buy: The company is recently leasing the business location and the business
future plans encompass the likely purchase of the location of an identical size.
2.4. Action Plan
Milestone or Achievable Target Date of
expected
completion
Person responsible
Increase the reach of the business within regional
NSW to increase sales by 12% each year for overall 3
consecutive years for an overall increase of 40%
Feb 2021 Marketing/Sales
Manager

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2.5. Products/ Services
Product/Service Description Price
Delivery and pick up
service
The company will pick-up and deliver small to
bigger sized packages/parcels that has till
maximum 120 kgs weight. This weight limit is
120kgs is applicable to lifting capability of the
installed lift gate on the rear of the trucks for
each package or parcel (Finch, 2016).
Price is different
based on weight and
size of all the parcels
along with
kilometers travelled
from the pick-up to
delivery location
2.6. Insurance
Workers Compensation: Workers compensation insurance such as “Certificate of
Currency” is accessible for viewing.
Public and Business Liability Insurance: Public and business liability insurance
including “currency certificates” are available in order to view.
3. The Market
3.1. Market Research
Sales manager’s reports explained that the contracts are lost due to the reason that the
consumers wish to get involved in a courier that can deliver to their regional offices, the marking
plan is to contract the previously lost consumers. This has facilitated in informing them of our
entry into the regional areas of NSW. In order to attract new consumers, the company will carry

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out market research for conducting market research in order to reveal market research along with
small and medium size businesses within regional situations. The company might contact the
likely new consumers along with informing them of the company’s impending entry within the
area.
3.2. Market Targets
The company’s target market includes small to medium sized businesses along with
residential consumers within the region of Sydney. The company is planning to expand its
businesses within the regional NSW that initiates with Newcastle, Wollongong along with
Central West Region within NSW. Fast Track Couriers attains an admirable 87% retention rate
for the present consumers. The consumers continue coming back to employ the company’s
services for the reason that 15-year history of cost along with reliable effective service.
3.3. Environmental/ Industry Analysis
The company’s recent consumers include Sydney based and the potential new consumers
will be attained from regional NSW. As a fraction of our expansion plans of the business, the
company is going to enter the local NSW marketplace. Through expanding each of the
company’s businesses, it will be accessing a gradual increase of 25% to the company’s base of
consumers.
3.4. Your Customers
Consumer Demographics: The company’s existing consumers are 80% small to
medium sized businesses, it does not have some continuous residential consumers and this
equates to around 20% of the present consumer base.

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Consumers Management: Due to the program of the telephone follow-up to make sure
consumers ongoing satisfaction with the company, Fast Track Couriers attains an admirable 87%
rate of retention for the existing consumers.
SWOT analysis:
Strengths Weaknesses
High traffic volume of Sydney due several
parcels along with the rate of retention
equivalent to 87% of the customers
Limited to the region of Sydney only and not
available to the regional NSW areas
Opportunities Threats
Possibility of quick expansion into regions
like Wollongong, Newcastle and Central
West of NSW
Presence of various national and regional
competitors
Competitors:
At present, the organisation holds 18% market share of Sydney. In addition, it provides
the right value to the customers in the region of Sydney. After embracing the regional NSW, the
organisation diversifies the client base at the expenditure of the rivals. Furthermore, the proven
value or reliability to the existing clients would embrace few old clients and new clients in
returning to services.
Details of the competitors:
Competitors Date of
establishment
Size Market
share
Value to Strengths Weaknesses

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(in %) consumers
DHL
Express
1990 350,000
internationally
11% of
NSW
Price and
reliability
The goodwill
and the
international
aspect of its
slogan “We
Deliver
anywhere/
everywhere”.
Too large, to
care about the
marketplace
of NSW
Fastway
Couriers
2003 800 across
Australia
12% of
NSW
Price and
reliability
National
organisation
The greater
costs of
overhead in
maintaining a
national
presence
Advertising and sales:
Advertising and promotional strategy:
Planned promotion/
advertising type
Expected business
improvement
Cost (in $) Target date
Giveaway, mail-out, social
media campaign and media
release
Increase in customer base
by 10% and rise in profit
margin by 12% within a
7,000 31/12/2018

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year
Sales and distribution channels:
Channel type Products/
services
Percentage of
sales (in %)
Advantages Disadvantages
Communication Delivery service 15% Smooth flow of
formal
communication
from managers
to subordinates
ensuring smooth
delivery
Possibility of
miscommunication
between managers
and staffs
Distribution Pick-up trucks 25% The specialised
members of the
distributional
channel help in
saving cost
Reseller might
involve in personal
selling and it
might lead to loss
of communication
control

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Organisational structure:
Key personnel:
Current staffs:
Job Title Quantity Expected
staff
turnover
Skills/Qualification
necessary
Date required
CEO 1 10 years Bachelor of Business Completed 2004
Operations
Manager
1 5 years Diploma of Leadership and
Management
Completed 2017
Sales
Manager
1 5 years Experienced in Sales and
Management
12 years
experience

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Job Title Quantity Expected
staff
turnover
Skills/Qualification
necessary
Date required
Administrati
on Team
Leader
1 2-3 years Certificate IV in Business
Administration
Completed 2015
Administrati
on office
assistants
6 2-3 years Certificate III in Business
Administration
Current
Drivers 20 2-3 years Light Rigid Drivers
Licence
Current
Strategies for retaining skills:
The existing staffs need to be reviewed based on their performance skills, as such review
would help in signifying if the existing level of skills of the current staffs needs update or
refreshment. The pay scales or staff remuneration would be depictive on outcomes of individual
performance. Depending on the employment contracts, all employees are judged on
performance, which could be either quantitative or qualitative.
Risk management:
Risk Likelihood Impact Strategy
Failure of trucks and Unlikely Medium Contingency plans

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delivery, which is
causing reliability of
deliveries in order to
decrease
available for the
contractor- trucks
and relief drivers for
delivery and pick-up
Legal considerations:
Registered organisation/business/company within the transportation sector
Operations:
Service process:
The organisation provides pick-up and delivery services to the customers. The drivers of
the company would attend the locations of the customers to pick-up, delivering the item to the
centre of distribution, in which the item would be shifted to the pertinent location of the delivery
driver.
Plant and equipment:
Equipment Purchase date Purchase price Running cost
10x trucks 20/03/2010 $400000 $35000/mth
4x computers for
administrators
20/03/2015 $12000 $1000/mth
Telephone system
10x dedicated lines
20/03/2010 $15000 $2000/mth

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Software technology:
MYOB is employed as a business tool related to database management. The database of
the organisation constitutes of a list of existing and old clients and the database could be used for
generating reports on business performance that constitute of the number of deliveries each day
per driver/day/client and the financial position of the business presently and estimated forward.
Trading hours:
The shop is open from 10 a.m. in the morning to 10 p.m. in the night and the demand for
the services of the organisation is expected to remain identical over the year. The new staffs
would be appointed from time to time to deal with the rising sales of services.
Channels of communication:
The main channels of communication constitute of telephone (mobile or landline), e-
mail, internet blog, fax and social media content. These channels would enable in increasing the
sales and profit levels of the organisation.
Payment types accepted:
In order to make payments for the services provided on the part of the organisation, the
customers are able to pay in cash, credit and Paypal.
Credit policy:
For those customers seeking the services from the organisation, credit period is allowed
based on the existing credit records. The credit period mainly varies from 60 days to 90 days and
it has special persons to collect the amount from the debtors.
Quality control: