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Tetra Tech Limited Sustainability Report

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Added on  2020/05/16

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AI Summary
This assignment delves into the sustainability practices of Tetra Tech Limited. It examines their policies on employee engagement, intellectual property protection, and supplier selection, highlighting their commitment to ethical business conduct. The report further analyzes Tetra Tech's dedication to social well-being through Corporate Social Responsibility (CSR) initiatives focused on education, healthcare, sustainable living, and infrastructure development. It also discusses their environmental responsibility, including waste management and carbon emission reduction efforts.

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Assessment 3: Business Plan
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EXECUTIVE SUMMARY
The report herewith deals with the business plan for a new startup company named “Tetra Tech
Limited”. The business is going to deal with consulting services wherein it will offer solutions to
structural engineering services. To start up, the business owner will use personal savings of AUD
$10000 and AUD $15000 will be taken as a loan. The business will rent a corporate office in
Melbourne, and the targeted customers will be set up architectural and engineering companies,
regional and federal legislative section, law offices, temporary workers, individuals and brokers
or dealers in Australia’s housing and industrial market. This business will be operated in a
manner so that from the first year, it will earn huge profits.
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Table of Contents
Executive Summary.........................................................................................................................2
Strategy and purpose of the Business..............................................................................................4
Services........................................................................................................................................4
Strategy........................................................................................................................................5
Market research/analysis.................................................................................................................6
Competitive marketing strategies....................................................................................................8
Customer analysis............................................................................................................................9
Financial plan, analysis and forecasting results.............................................................................13
Financial Assumptions...............................................................................................................13
Business ethics...............................................................................................................................19
Business Controls..........................................................................................................................20
Business sustainability...................................................................................................................21
REFERENCES..............................................................................................................................22
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TASK 1
STRATEGY AND PURPOSE OF THE BUSINESS
The new business which is going to be introduced in the market is related to a consulting firm
that will offer solutions to structural engineering services. This business will be operated under
the name “Tetra Tech Limited”. This newly started company will offer professionalism in
engineering designs for their clients. They assist the customers to plan, control and design for
business, residential and commercial type of buildings. The main concentration of business will
be on the general population division within remote groups crosswise Australia.
Tetra Tech Limited will be a company with limited liability. The organisation will be owned
privately, and its purposes will be to offer inventive and efficient plan services by keeping up
cutting edge outline innovation. To remain competitive in the market, the organisation will
address customer issues on tasks of all sizes and also handle special projects for design.
In the initial years, business will need a corporate office that will be set up in Melbourne,
keeping in mind the end goal to lessen start-up charges. The workplace space is assessed to be
150 square feet, however; the business will introduce a committed fax line and additionally a fast
Internet association. An intelligent site will likewise be produced which will fill in as a
promoting instrument. The domain name of "tetratech.com" has just been saved to operate
website smoothly.
Services
Tetra Tech Ltd. will significantly offer complete services for structural engineering. However,
business will concentrate on structures with three areas 'Utilize and Occupancies': housing,
business and industrial. The organization is scheme oriented where each task includes distinctive
classifications such as redesigns, restoration, increments, new development. The main services of
business are described hereunder:
Project Consulting: The main service is project counselling that will be offered to Client
Company in a way to show company’s expertise in different domains. There will be cost
associated with every project that will be called as “Proposal costs”.
Forensic Investigations: The Forensic investigation services will be offered to serve the public
and private sector market. However, the company will specifically focus on troubleshooting
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buildings where there is huge damage has occurred. The reports offered by company will outline
the causes of damages and failure and will suggest remedial action with budgeting solutions
Project Management: Furthermore, the business will provide special project management
services including, identification of client needs, designing bid documents, biding analysis,
review of the construction plan, verification and certification of payment, warranty inspections
etc. for different types of products like as new amenities, renovations, maintenance, and
restructuring.
Resolution of disputes: The corporate entity will draw a distractive range of construction and
contract administration to offer services for resolution of disputes. This area of services will be
supported by forensic engineering services as it will require assessing cause as well as remedies
of failures.
Restoration Engineering: The next in line services that will be offered to the organisation will
be condition survey, construction review and design, which will be specifically aimed at
repairing buildings.
Home Inspections: Under the service of home inspection, the company will offer potential
homeowners with the lending services related to residential home. These services will include
framing, repairing requirement, assessing mechanical systems, electrical systems as well as
general protection. Both types of reports will be offered to the clients such as photographic
record as well as written report.
Strategy
The new startup will move back and forth to qualified experts to add outline and draft services
through the computer (CADD), claim to fame association plans, and examine the support service
system that are regions which business can bear to contract out without taking a chance with the
centre esteems offered to the customers.
The business entity is aimed at encouraging cooperations with its special offerings of auxiliary
components, including stuck covered wood, pre-built measurement stumble trusses, designed
timber, and steel to encourage this methodology.
From the second year of operations, the company is planning to secure retail existence in
Sydney. At this stage, it will look for qualified students of engineering from north to give them
the experience of the work in an auxiliary designing office condition.
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Tetra Tech Limited will keep up the total and exhaustive Windows® based investigation
instruments for the auxiliary outline. An incorporated plan and tool of drafting allows a few
assessments to be made on a structure at negligible cost. Tetra Tech Limited will keep up an
Internet site all complete up with the document exchange convention abilities. Following, its
aggressive strategies of training its employees into different engineering domain, the company
will enhances its market reach to quality control and assurance that will be specifically served to
the needs of the welding industry, wherein company will ensure with a certified firms and their
qualified welders to execute specific welds on the basis of requirements of clients.
The organisation will maintain good relations with customers while offering them a toll-free
number to offer 24 hours a day services; this will be a competitive strategy of business to capture
a huge market share in the industry. The organisation is going to deal with a highly competitive
market, therefore; the business is aimed to give personal attention to elegant designs so that the
client expectations can be exceeded. However, under its unique business strategies m the
corporation will offer a guarantee to meet environmental objectives and work with clients
budget.
MARKET RESEARCH/ANALYSIS
The engineering sector has hired millions of individuals and concentrates on the various types of
markets such as industrial, mechanical, civil and electrical. Engineering is the most important
industry for the development of the nation’s economy. The technology up gradation has mostly
contributed to the industry as well as helped many innovative minds (Engineering Market
Update Australia, 2018).
Tetra Tech Ltd. will focus on outmoded Architect/Engineering (A/E) contracts. The owner will
usually contract the A/E to perform planning and design services. These design services include
preparation of plans, specifications, and estimates.
According to the industry analysis, it has been noted that construction services are restricted to
irregular field visits, and there are various requirements of contract administration. The data
from the engineering consulting industry indicates that there are four main types of projects
along with the total design fees are distributed. These services are Mechanical Design (15%),
Structural Design (10%), Architecture Design (65%), and Electrical Design (10%).
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Tetra Tec Limited has significantly assessed the important clients from architectural/engineering
firms who are in need of structural engineering services (Engineering Market Update Australia,
2018).
Within Australia, there is a high level of activities relating to building services that are being
driven by an enormous range of commercial and housing development markets. Therefore the
market for structural engineering services is continuously growing. There is a huge need in the
market for focus and cutting-edge engineering solutions within three main sectors like as
commercial, business and housing sectors.
The profits of the Engineering Services industry have developed moderately in the past years.
The growth of the revenues has been greatly limited by weakening the expenditure on the capital
on the personal construction of non-residency. This was because of the falling price of
commodities and also the completion of the important projects of LNG. It has also lessened the
investment from resources and mining companies. On the other side, it has been noted that the
trend in Australian government is rising about outsourcing major infrastructure projects.
However, there is a significant move towards increasing public sector capital expenditure which
is further supported by the growing industry demand over the past few years. According to the
recent data, the revenue of the industry has been expected to increase annually by 1.6% in next
year i.e. 2017-18. The revenues of the industry will significantly be reached to $40.4 billion.
Thus, there is a subdued growth of 0.6% over the last year (Heaton, 2017).
Industry information & Market dimension
Revenue
$40bn
Annual growth
1.6%
Employment
132,404 people
Business
33,862
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COMPETITIVE MARKETING STRATEGIES
Tetra Tech Limited proposes their customer's predominant services along with the state of art
analysis and outline abilities. The company recommends three-dimensional perception services
to lessen the likelihood of spatial clashes with structural components and other designing
controls. In the examination, our rivals depend for the most part on two-dimensional models.
The business is going to actualise a quality confirmation and control program for all scheme
attempted. This record will serve to concentrate on the gauges which will be accomplished and
also the methods for estimating execution.
A precise way of arranging and recovering a library of auxiliary components and gatherings will
be executed. Slide libraries will be accessible from an instrument bar inside Auto CADD for
speedy access. To gain competitive advantage the business will embrace the layering gauges of
the American Institute of Architects (AIA). In the examination, our rivals don't have a
coordinated database.
Tetra Tech Limited will embrace the recording frameworks created by the AIA. All undertaking
data will be followed utilising a coordinated database administration framework. The greater part
of our business instruments will be the year 2000 acquiescent.
A pamphlet framework, which covers an expansive range of the objective marketplace fragment,
will be produced at the time of underlying year of operations. This framework will be particular
and incorporate many 'standard' segments which might be altered to suit particular needs.
Pamphlet additions will be kept up as distinct sheets to encourage their get together in any
conventional circumstances.
Our site will be created in the initial operational years and incorporate a portrayal of services, the
territories which we intend to serve, contact data, a rundown of agent ventures, and a concise
memoir of proprietors. A domain name has just been saved and soon will be registered with the
website of http://www.tetratech.com
A sequence of the pattern will be created for plan proposals. The format for all proposals will
include:
Cover letter.
The range of services for each plan.
Payment (if demanded).
Entity's experience to offer services.
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Plan Team (describes tasks and qualifications of each authorized individual).
Beliefs of the design approach.
Significant experience.
Plan to offer services.
Tetra Tech Limited offers the subsequent competitive border that will include following points:
State-of-the-art modelling, drawing, examination, and drafting ability.
Excellence control and declaration program.
An Internet website (HTTP:\\www.Tetra Tech limited.com, and e-mail, info @Tetra
Tech limited.com).
CUSTOMER ANALYSIS
The most imperative customers will be set up compositional and designing company who require
basic building and engineering services. The market for designing services might be compressed
with the accompanying gatherings:
Set up Architectural and Engineering Company:
Regional and Federal Legislative Section
Law Offices
Temporary workers
Civil Governments
Concealed Individuals:
Brokers
The probable chart of the market and the analysis of market table depend on rates which each of
these gatherings could add to the administrations advertised. This way of depicting the
impending marketplace is highly suitable for this kind of trade. By considering this fact it can be
said that, the established engineering businesses represent 65% of the prospective market with
alternate members asserting adjust in littler extents.
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The pricing of projects will be as per billing rates which are going to be addressed at a variable
rate. The organisation is going to consult at three main levels so it easy to manage price quotes
level. It is easy for a corporation to set prices from a low range to higher range. In both the
sections, the prices are too low and are too high (Engineering Market Update Australia, 2018).
The clients in the industry need to pay substantial fees against the best quality professional
advice. However, the nature of billing is too sensitive, and the clients are more likely to offer
the job starts at $20K and end this cost up to $30K because the business is going to overrun,
however for an extraordinary quality, the company is going to offer $ $35K and more
The clients tend to compare the services rarely however they can compare directly, and they
always look for two or more possible providers of a significant project. More often than ever,
word-of-mouth offers good recommendations to clients for the best services in the market m.
Therefore, the new business will aim to develop goodwill in the market by offering the quality of
services. The advertisements will help the business to gain the attention of the client from the
intensely competitive market.
The foremost important element of the corporation is general competition, but, it is what to keep
clients happy to gain repeat business. Therefore, it is worthy to make huge concessions in a
single project to maintain good client relationship that will force them to ask for services again
and again.
Promotion Strategy
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For sales promotion, we will extensively make use of internet services (Kotler, 2015). We will
accomplish this through a well organized direct mail services along with a well-directed email
campaign. The main aim of this strategy will be to create awareness about the services we are
offering to all the major market players. Though we have a limited budget for advertising these
funds will be used wisely to promote sponsored the event in the community. As a part of our
promotional strategy, we will also provide technical services to the organizations working at not
for organization at a much-discounted rate. In some remote areas, we will approach the
principles of local elementary school for offering them a counsellor for opting structural
engineering as their career. The management team of Tetra Tech Limited will also reach in the
Northwest Territories for business incentive policy. This policy will be directed towards the
firms which are located in the area and provide them with incentives regarding the evaluation of
services.
Positioning Statement
Tetra Tech Ltd will also offer competitive and reasonable options for recognized engineering and
architectural firms in located in Yellowknife requiring services of engineering sub-consultant.
The projects may be handed over directly to Tetra Tech Limited, or they can even delegate to the
arrangements that are made to complement and assist their in-house staff. (Rothaermel, 2016)
Pricing Strategy
The consulting price of the services will be based on an hourly basis on established levels that
will be dictated by the milestones of the project schedules. We have assigned the hourly price at
the rate of $80/hr. For the drafting services, the rate is decided at $40/hr. These values are
decided by rate prevailing in the market (Nagle, Hogan and Zale, 2016). We have made use of
conservative unit rate to remain competitive in the market.
Sales Strategy
According to Kowalkowski (2017), for gaining success in the consulting industry, it is important
to focus on providing quality services to the clients that result in repeated business for the
Company. By considering this fact; business will ignore the risk of buying project where the
remuneration is very less than the scope of work. If the clients have questions regarding the cost
of the project, we will explain them the benefits of our proposal that reflect the tasks which will
be performed. The services will be decided according to the budget of the project. The rates for
billing will be kept non-negotiable except for the not for profit organization.
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Personnel Analysis
The business herewith is going to deal with a services industry. Therefore, it is needed to have
effective human resources which must be qualified enough in their task so that business can get
competitive advantages. Within the first year of business, the business will open new vacancies
with across most categories within the engineering sectors. Our business will be operated with
the services of engineers who can meet project demand and add to customer’s service
expectations. The person must be having some experiences however fresher will be invited for
the job. The various departments will be handled by the owner itself, like as sales and marketing.
The owner has sufficient management skills, therefore; the business process can be handled
effectively. Tetra tech limited will be operated by the owner who will be operating as a general
manager and will be accountable for the daily activities of the firm. The business will require a 2
technicians, 1 engineer and 1 telly caller a service boy who can will be responsible of
supplementary activities. All the staff will have standard payroll, and there will be four members
excluding the manager or the owner of the company.
Year 1
One engineer AUD $350
Technicians 1 AUD $250
Technicians 2 AUD $250
1 tellycaller AUD $150
Total people 4
Total payroll £1000
FINANCIAL PLAN, ANALYSIS AND FORECASTING RESULTS
The start-up expenses of the Company will also include legal expenses that will be incurred
initially along with the charges paid for getting the license and permit for the business and
expenses related to stationery, office equipment, furniture and software. Apart from these start-
up cost, the company will also place some amount of initial balance. The purchase of software
comprises an allowance for $25000 for AutoCADD® 10000, and other expenses will be there.
For registration fee, the company will pay AUD $2000. The owner will use personal savings of
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AUD $10000 and AUD $15000 will be taken as a loan. The financial plan is significantly
dependent on important assumptions, wherein, it has been assumed that the business is operating
in a strong economy, and therefore will be no major recession in the upcoming years.
Furthermore, it has been assumed that this business will considerably transform the delivery of
engineering services and the business will bear interest rates of the loan and will pay tax rates
under the Australian law.
Financial Assumptions
Rent is going to increase by 10% p.a.
Website Hosting Fees will remain same in all three years
Salary will increase by 10% p.a.
Purchase of software comprises for an allowance for $25000 for AutoCADD® 10000
Utility expenses will remain same.
Revenues will be based on unit sales
Prices will not change so as to remain competitive in the market
Electricity bill and the telephonic bill will be 500 p.a.
Repayment of loan will be done upcoming 3 years
Marketing expenses will be fixed @100 per year
Depreciation will be charged straight-line method
7% interest rate on a personal loan of AUD 10000
Tax rate will be 20% as per Australia norms
Sales forecasting
Unit Sales Year1 Year1 Year1
Project Consulting fees 600 750 800
Project Management charges 200 240 260
Cost of Inspections 80 100 120
Computer Aided Drafting
Services
800 900 1,000
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1680 1990 2180
AUD $ AUD $ AUD $
Unit Prices Year 1 Year 2 Year 3
Project Consulting fees 40 40 40
Project Management charges 50 50 50
Cost of Inspections 40 40 40
Computer Aided Drafting
Services
30 30 30
Year1 Year1 Year1
Sales AUD $ AUD $ AUD $
Project Consulting 24000 30000 32000
Project Management 10000 12000 13000
Home Inspections 3200 4000 4800
Computer Aided Drafting
Services
24000 27000 30000
Total sales 61200 73000 79800
Direct Unit Costs AUD $ AUD $ AUD $
Project Consulting 20 22 16
Project Management 20 20 16
Home Inspections 20 20 16
Computer Aided Drafting
Services
12 10 8
Direct Cost of Sales AUD $ AUD $ AUD $
Project Consulting 12000 16500 12800
Project Management 4000 4800 4160
Home Inspections 1600 2000 1920
Computer Aided Drafting
Services
9600 9000 8000
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Subtotal Direct Cost of Sales 27200 32300 26880
The income statement shows the significant areas of income and expenses for the firm in the
upcoming years. The main income stream is four main services including Project Consulting
Project Management, Computer Aided Drafting Services, Home Inspections, from where
business is going to earn huge revenues, however, some expense will be included that are
explained in the herewith section
Year 1 Year 2 Year 3
Utilities 1000 1000 1000
Rent 200 210 231
Marketing 100 100 100
Website Hosting Fees 500 500 500
salaries to staff 12000 13200 15720
Engineering Assoc Annual Fees 100 100 100
electricity bill and telephonic
bill
500 500 500
Depreciation 1000 1000 1000
Interest payment 10500 7000 3500
other expenses 500 500 500
Projected Income statement (AUD $)
Year 1 Year 2 Year 3
Turnover 61200 73000 79800
Cost of goods sold 18360 21900 23940
Gross profit 42840 51100 55860
Expenses
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Utilities 1000 1000 1000
Rental cost 2400 2520 2772
Marketing expenses 100 100 100
Website Hosting Fees 500 500 500
salaries to staff 12000 13200 15720
Engineering Assoc Annual Fees 100 100 100
electricity bill and telephonic
bill 500 500 500
Depreciation 1000 1000 1000
Interest cost 10500 7000 3500
Other expenses 500 500 500
Total expenses 28600 26420 25692
Profit before tax (operating
profit) 14240 24680 30168
Tax @20% 2848 4936 6033.6
Net profit 11392 19744 24134.4
From the revenues are expenses analysis, it can be predicted that the business is going to earn
good profits from the 1st years of business. Cash flow projection is crucial to the success of
business wherein the cash inflow and outflows of will be shown on either monthly or annual
basis. The following table is showing 3-year forecasting of cash flow in business in which all the
one time and regular investments are included. The pre-operating and post operating expenses
are as follows:
Pre-operating expenses AUD $
Registration charges 2000
Marketing expenses 20000
Software purchase cost 25000
AutoCAD 10000
Interior expenses 50000
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Pre-operating expenses
AUD $
Year 1
Rent 2400
Marketing 100
Website Hosting Fees 500
Salaries to staff 12000
Engineering Assoc Annual Fees 100
electricity bill and telephonic bill 500
Predicted Cash flow (AUD $)
Particulars
Pre-
operating
year year 1 year 2 year 3
Cash inflow
opening -82000 -41400 9680
Turnover 61200 73000 79800
Initial investments
Owners contribution 10000
Bank loan 15000
Total cash inflow (A) 25000
-
20800 31600 89480
Total cash outflow
Total direct expenses 27200 32300 26880
Registration charges 2000
Marketing expenses 20000
Software purchase cost 25000
AutoCAD 10000
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Interior expenses 50000
Rent 2400 2520 2772
Marketing 100 100 100
Website Hosting Fees 500 500 500
salaries to staff 12000 13200 15720
Engineering Assoc Annual Fees 100 100 100
electricity bill and telephonic
bill 500 500 500
Loan repayment 5000 5000 5000
Total cash outflow (B) 107000 20600 21920 24692
Total cash flow(A-B) -82000 -41400 9680 64788
BUSINESS ETHICS
The Tetra Tech Limited will be a participant of the guidelines laid by BEB (Brand Equity &
Brand Promotion) that ensures that the business abides by ethics, accountability and transparency
across the Organization and in everyday activities (Crane and Matten 2016). Being a consultancy
business, it brings many responsibilities towards the customers and community. Thus, we aim to
manage our Company in compliance with the business ethics that are laid in the document, and
the same will be in the top priority list for the Company. While conducting business, we will
keep our promises and will be strictly resisted by activities like bribery and protect our core
values of health and safety. The biggest investment of the business will be made in the human
resource. All the staff working in and for the Company will be made known the values of the
company and will be directed towards following it in all the activities they do. The company also
aims to meet the expectations of our stakeholders by ensuring participation at all levels and
respecting the endeavours of the employees. Some important steps taken in this regard are-
To be an innovative company by adhering to the quality norms and satisfying all the
necessary legal requirements by working in line with the standards.
We will ensure satisfaction of the staff by conducting services within the established
framework of legislation.
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We will also make sure that our staff receives adequate training which improves their
performance and personal skills.
To ensure that the requirements of the customers are met as per the primary and
secondary legislation which result in increased satisfaction of the customers and maintain
it
We consider gaining the trust of the segments of customers as our most important duty by
reaching them through economic and fastest services that are aimed to maintain total
quality and continuously improving them.
BUSINESS CONTROLS
Tetra Tech Limited will maintain comprehensive and complete tool for analysis of the structural
design. Windows® will serve the purpose of an integrated tool for computer-aided designing for
drafting that makes it easier to carry on the business at minimal cost (Nicholas and Steyn, 2017).
The business will also maintain an internet website for the FTP (with file transfer protocol)
capabilities. The business will be created with a mindset of delegation. This starts with
understanding the process of delegation to the lowest levels. This will lead to an organization
surrounded by smarter people till the lowest level worker by which they can use their skills for
the betterment of the business. It is important that the business stays align with the budget and
reducing unnecessary expenditure. The company can switch to less costly software that provides
equal features and benefits. The company can reduce travel expenses by video calling and online
conferencing.
The business is a new start up and hence it will face many challenges with regard to managing
the finance. If we fail to manage our funds, the business will face losses and fail to receive
success. Thus, as per Hanssens, Deloof and Vanacker (2016), it is important to keep tabs on the
expenses especially in the cases where large money is involved. The management will need to
review the performance of the business according to the standards and projected cash flow. In the
areas of health and safety, the risks are identified and assessed by training employees to work in
a safe environment.
The business will aim to provide equal opportunities for employment to all the eligible
candidates. The company is strictly against discrimination on the grounds of race, caste, religion,
gender, marital status, sexual orientation, age, nationality, etc. (Klarsfeld, 2017)
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The company aims at designing fair and transparent employee policies which will be aimed at
promoting diversity and equality at the workplace. According to the words of Anitha, (2014),
these policies laid clear rules regarding terms of employment and training. The company is
committed to respecting the property rights of others and will never misuse the assets, trade
secret and intellectual property including trademarks, some specialized software. The company
will select their suppliers fairly. Tetra tech Limited seeks to work with their suppliers who
demonstrate the same values as that of the company.
BUSINESS SUSTAINABILITY
The company is dedicated to ensuring the social well being of the society through initiatives of
CSR activities. The company will engage by undertaking activities by approaching the society
and other stakeholders by proactively approaching them to understand their needs and designing
initiatives for their well being. The activities will be undertaken in the areas of education,
healthcare, sustainable living, and infrastructure development. All the employees will be
provided to all the employees. The company will also assume the moral responsibility for waste
management and other environmental issues like reducing carbon emissions (Galea, 2017). The
engineers of Tetra Tech are committed to design activities that incorporate sustainability to help
the clients for resource conservation. The Company simultaneously incorporates technology and
sustainability into the business activities.
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