Strategic Business Plan - PDF

Running head: STRATEGIC BUSINESS PLAN 1
STRATEGIC BUSINESS PLAN
Student Name
Institution

STRATEGIC BUSINESS PLAN 2
Executive Summary
This Business Plan provides an analysis of the processes, requirements and cost Academies
Australasia is likely to incur when expanding to Hobart, Tasmania. Therefore, the plan
provides a summary of the business plan, organizational structure and operational plan,
analysis of the market, future of the facility and financial analysis. This helps to determine
the institution’s capability and the impacts of the project to the performance and growth of
the institution.

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BUSINESS PLAN SUMMARY
The Business
Name: ABN: 53 150 738 195
ACN: 150 738 195
Date Established: 8/05/1908
Location: Hobart, Tasmania
Academies Australasia is an institution providing educational services in the English
language, Preparatory Certificate, Advanced Diploma, and Diploma. The institution has
campuses in Dubbo, Sydney, Gold Coast, Melbourne, Perth, Adelaide, and Brisbane.
Additionally, it has a college in Singapore which offers courses that meet the Australian
standards. Academies Australasia has a diverse population of students coming from more
than 127 countries. As a result, it is able to offer unique learning experiences while
acknowledging cultural diversity among students (McKellar, 2017).
Market
Academies Australasia targets students from high school who want to acquire skills in
particular fields (Richard, 2015). Also, it targets adults, who would like to improve their
skills to improve their opportunities in employment, employers who are interested in offering
work-based training to employees and students who are enrolled in College programs like
Adult Basic Education (ABE).
The Finances
Academies Australasia plans to expand to Hobart, Tasmania. Therefore, it hopes to
generate a net profit of $3.1m projected to the end of the year 2019. To get this profit, the
facility needs to invest $16, 000,000 in the implementation of the plan. Majority of the

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expenses will cover construction, furniture’s and equipment’s. $10 million of the cost will be
funded by the institution. The remaining $6 million will be funded through credit.
Future
Vision
To be known as the provider of quality education
Mission
To provide good educational foundation for students through empowering them with skills
and knowledge.
Goal
 Empower students to achieve career success
 Provide quality teaching
 Provide students with industry placement opportunities.
The Business Plan Timeline
Grant Chart
Program 20th
May
2008
25th
May
2008
5th
June
2008
10th,
June
2008
15th
June
2008
25th
June
2008
1 Planning
2 Analysis
3 Design
4 Implementation
5 Completion
THE ORGANIZATIONAL STRUCTURE AND OPERATIONAL PLAN
Business Details

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Academies Australasia is a higher learning institution offering Australian-Standard courses in
English, Singapore Government School Preparatory Certificate, Senior High School,
Diploma and Advanced Diploma.
Registration Details
Category Details
Registration Higher Education Provider
Status Registered
Registration Renewal 26/05/2018
Registration Code 02439G - VIC
Provider ID PRV 12112
Trading Name Academies Australasia Polytechnic, AMI
Education, AAPoly
ABN 28 100 905 182
Business Premises
The new branch will be located at Hobart, Tasmania. It covers an area of 1,695.5 km2.
It is within the Capital City of Australia. It has a population of 225,000 which is 40% of the
Australian population. Hobart is found on the estuary of Derwent River.
Products and Services
Academies Australasia offers full-time and part-time courses at:
 Diploma
 Advanced Diploma
 Certificate in English Language Programmes

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Organizational Chart
Management and Ownership
The business will be part of the Academies Australia Group Limited (AKG) and will
be owned by the following:
 Heng Chiang Meng
 Christopher Campbell
 Jilcy Pty Ltd
 Andrew Low
 John Lewis SchledererEng Kim Low, Geminder Holdings Pty Ltd, and Raphael
Geminder
Board of Directors
Examination Board Academic Board
Exams Sales/marketingStudent
Services
Chief Executive Officer
Managing Director
Program LeaderProgram Leader
Student
Services
Academics Finance and
HR

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HR Policies regarding recruitment
AKG holdings are a fair recruitment centre that offers equal opportunities for
applicants. Hiring will be based on competency and merit.
Key Personnel
Title Numb
er
Expecte
d
Turnov
er
Skills Date Required
Marketing
Manager
1 2-2.5
years
 At least 5 years in Marketing
 At least a Bachelor’s Degree
in Sales and Marketing
1/12/2018
Human
Resource
Manager
1 12 to 18
months
 At least 3 years in HMN
 At least Bachelor’s degree in
HRMN
 Good listener
 God team player
4/12/2018
Compliance
Manager
1 2-3
years
 At least 5 years in
Compliance management
 Bachelor’s degree in
compliance and policy
 Good listener
 Work under minimum
supervision
4/12/2018
Products/Services
Academies Australasia, Hobart branch will offer training services to students in
courses accredited by the Board of Higher Learning in Australia.
Innovation

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Academies Australasia plans to form partnerships with other universities in Tasmania
and invest in Ph.D. support for staff.
Insurance
Academies Australasia has appointed FPS, Lonpac Insurance Bhd to protect the
amount invested in the project. Therefore, in case the institution cannot continue with the
project because of regulatory closure or insolvency, FPS will protect shareholders through
compensating them.
Risk Management Plan
Risk Likelihood Impact Strategy
Economic and
External factors
(Stock market
trends, change in
the preferences of
the market, interest
rates, inflation
levels and
commodity prices
Likely High The factors are beyond the control of AKG
hence it is hard to determine how they will be
addressed (Stewart, 2017).
Securities
Investments
Unlikely Medium Consult stoke-broker, lawyer, accountant and
financial advisors immediately (Swani, 2017)
Counterparty Unlikely Medium Terminate Contract
Legal considerations
 Corporation Act
 Environmental legislation, permits, and licenses
 Australian Competition and Consumer Commission laws

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 Australian Consumer Law
 Australian Information Commission Privacy Legislations
 Fair Trading Laws
Operational Plan
Academies Australasia offers educational training in accredited courses to both youths
and adults. It involves enrolling and placing students in the chosen programs. To be part of
the institution at Hobart, the students will be required to apply through the organization’s
online portal. AKG has a commendable relationship with suppliers (Kozubikova et al, 2017).
This will be extended to the Hobart branch.
Sustainability Plan
The business plans to use 60% of its electricity from renewable sources, 60% of
cooling and heating from renewable sources and offer 25% sustainable dining food services.
Regarding waste, the business plans to achieve 60% diversion on routine operations and 50%
70% diversion for special projects.
THE MARKET AND MARKET ANALYSIS
Market Research
Academies Australasia conducted both qualitative studies. Through content analysis,
the business established the status of polytechnics in Hobart, the gaps, and opportunities
available. Prior to the opening of the institution, marketing campaigns will be conducted to
make the community aware of the new facility (McKenzie, 2017).

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Market Targets and 4Ps of marketing
The plan targets both youths and adults living within Tasmania and would like to
improve their skills using the various courses to be provided within the facility.
4Ps of marketing
Item Description
Product  Academic courses
 Qualified and experienced tutors
 Quality education
 Counseling for students
Place Hobart
Price Average fees per semester
 Diploma: $18,000
 Advanced Diploma: $24,000
 Certificate in English Language Programmes: $22,000
Promotion  Media advertisement
 Advertising in malls
 Advertising in social networking sites and Academies
Australasia’s website
Competitors
There are 43 higher learning institutions in Tasmania. Among them, there are two
international universities while the remaining 40 are public. Admittedly, the cost of public
higher learning institutions is relatively cheaper compared to private institutions. This poses a
great challenge to the plan.

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Porter’s Five Force Analysis
Competition
Tasmania is preferred by most international students hence it has a large number of
colleges, both national and international (Nicolescu, 2016). Currently, the University of
Tasmania has the largest market share in the education industry. This is makes it the main
competitor.
Potential New entrants
There are various education facilities in Tasmania that are offering non-traditional
programs which are gaining recognition within the community.
Supplier’s powers
The power of suppliers of education has shifted. Today, college professors can
conduct lessons through books, videos, seminars, and web pages. This poses a challenge
hence Academies Australasia will need to shift to accommodate more students.
Customer’s power
Student’s power has increased since they have a wide variety to choose from. This
limits the ability of colleges to change tuitions fees as per their standards.
Threat
There is an increased use of technology in colleges. This limits the market share of
organizations that have not sufficiently adopted technology in education.
Customers

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The College in Hobart targets male and female youths who have completed high
school and are interested in acquiring skills in English Programmes, Diploma, and Advanced
Diploma.
SWOT analysis
Strengths
 High-quality faculty
 Administration’s work ethic
 Location has a good climate making it
favourable to many
Weaknesses
 New area
 Convincing the community that the
institution offers quality courses
Opportunities
 Online Diploma and Bachelors’
programs
 Growth
 Developing deeper connections
within the Hobart community
Threats
 Increasing the Tuition Cost
 Online Diploma and Degree courses
Advertising and Sales
Advertising
Planned
promotion/A
dvertising
type
Expected Outcome Cost per
month
Target
Date
Online
Advertising
 Turn onlookers to learners
 Increase awareness regarding the presence of
the institution in Hobart
$12,000 10/6/2018
Print Media  Increase awareness of Academies Australasia
 Attract applications
$100,000 20/10/2018

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Direct Selling  Attract Applications
 Interact with the community (Porter, 2018)
$10,000 20/9/2018
Sales
The sales team will be supported by the Department of Management and Marketing.
The team will comprise of marketing manager, sales Director and others will be determined
after the opening (Folta et al, 2016). They will be in charge of selling the services of
Academies Australasia to students and parents.
THE FUTURE
Vision
To be known as the provider of quality education
Mission
To provide good educational foundation for students through empowering them with skills
and knowledge.
Goals
 Empower students to achieve career success
 Provide quality teaching
 Provide students with industry placement opportunities.
Action Plan
Milestone Date of Expected
Completion
Person Responsible
Analysis of the
organizational needs
25/5/2018 Project Management team
and management

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Target market research 5/6/2018
Marketing and Promotional
activities
10/6/2018-20/10/2018 Sales and Marketing
Department
Launching of the facility 20/10/2018 Management, shareholders,
FINANCIAL PLAN
a) Key objectives & financial review
The company focus on providing quality services that will satisfy the needs of its potential
customers. Customer satisfaction is a key strategy to maximise sales. Academies Australasia
focus on profitability as discussed in this section.
b) Key Assumptions
There are three key financial assumptions that have been made by the business. First, the
current interest rate is 10%. Second, the long-term interest rate is 13%. And, third, the
corporate tax rate is 30%.
c) Start-up costs
Owners of Academies Australasia will incur a start-up cost of $200,000. The money will be
used to set up the premises, acquire plants and equipment, starting operations, and start-up
capital. The owners have no savings and the entire amount will be obtained through a 10%
loan payable in three years. However, the interest on the loan is likely to increase to 12%
over the next two years.
d) Balance sheet forecast

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According to the projected balance sheet, Academies Australasia will have total assets
amounting to $ 7,271,620 as at 2009. The total asset will comprise of $4,901,620 and $
2,370,000 for current assets and fixed assets respectively. Likewise, total liabilities will
amount to $ 1,309,000 (current liabilities) and $ 5,962,620 as capital during the same period.
e) Profit and loss forecast
The profit and loss forecast has been done on a monthly basis. The total sales at the end of
2009 is projected at $ 13,000,000. The business will have a gross profit of $7,570,000 after
deducting the cost of sales (Krastev, 2018). Likewise, the total net profit will stand at $
5,962,620 representing a net profit margin of 46%.
f) Expected cash flow
According to the Academies Australasia’s forecasted cash flow, the company will have total
closing cash flow of $ 8,637,000.
g) Break-even analysis
The company’s average selling price per unit is projected to be $400 per unit while the
average cost will stand at $ 150 per unit. Therefore, the company’s gross margin will stand at
63%. With a fixed costs will be $ 1,607,360. The Academies Australasia Company will have
to make sales amounting to $ 2,571,808 to break even which translates to a break-even units
of 6,430 units.
References

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Chambers, I., & Humble, J. (2017). Developing a Plan for the Planet: A Business Plan for
Sustainable Living. Routledge.
Dror, S. (2017). Linking operation plans to business objectives using QFD. Total Quality
Management & Business Excellence, 1-16.
Folta, T. B., Helfat, C. E., & Karim, S. (2016). Resource Redeployment and Corporate
Strategy. Bingley: Emerald Group Publishing Limited.
Krastev, L. B. (2018). PRACTICAL ASPECTS OF FINANCIAL CONTROLLING IN A
COMPANY. Economic Archive / Narodnostopanski Arhiv, (1), 3-17.
Kozubíková, L., Homolka, L., & Kristalas, D. (2017). The effect of business environment and
entrepreneurs’ gender on perception of financial risk in the SMES sector. Journal of
Competitiveness, 8(1).
Macaulay, S. (2018). Non-contractual relations in business: A preliminary study. In The Law
and Society Canon (pp. 155-167). Routledge.
McKellar, R. (2017). A short guide to political risk. Routledge.
McKenzie, D. (2017). Identifying and spurring high-growth entrepreneurship: experimental
evidence from a business plan competition. American Economic Review, 107(8), 2278-
2307.
Nicolescu, O., & Lloyd-Reason, L. (2016). Challenges, Performances, And Tendencies In
Organisation Management. Singapore: World Scientific.
Richard, H. (2015). Marketing, Sales and Customer Management (MSC) : An Integrated
Overall B2B Management Approach. Berlin/Boston: De Gruyter Oldenbourg.