BSBMGT617: A Business Plan for Fast Track Couriers' Expansion into NSW

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BSBMGT617
Develop and implement a business plan
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Contents
Assessment 1...............................................................................................................................................3
Part A: Business Plan...............................................................................................................................3
Part B: Strengths and weaknesses of the plan.........................................................................................8
Assessment 2.............................................................................................................................................10
Assessment 3.............................................................................................................................................13
References.................................................................................................................................................17
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Assessment 1
Part A: Business Plan
Executive Summary
 The objective of Fast Track Courier is to increase its business operations with proper
growth and profit margins.
 The mission of the Fast Track Couriers is to provide the qualitative and on-time services
to its clients to maintain the trust and loyalty in the clients.
 The key to success for Fast Track Couriers is quality services, experienced workforce and
various training and development programs for its labor.
 The initial financial planning will help the organization in dealing with financial risks.
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Introduction
Fast track couriers is running successfully in South Wales from last 15 years in delivering the
medium to large size packages in metropolitan of Sydney. The firm is operating in the business
environment with proper profit and growth margins. It provides services in a limited
geographical area with complete customer satisfaction. The firm has done its marketing with the
help of various mediums like internet listing, social media, direct sales and telephone etc. It is a
family owns firm with various family members as the staff.
Description of the business (background)
Fats Track couriers has established and maintained a reputation in the market by its primary
business functions. The firm had a small but experienced team with some tied clients at its initial
level of business operations for whom it provides reliable, fast and cost-effective services. The
vision of the firm is maintaining its core values with the expansion. The firm wants to extend its
area of business operations in New South Wales and to increase its sales in upcoming three
months.
Marketing activity – the market
The operational and strategic plans of the firm are to expand its business operations for
increasing the profit of the firm by extending its delivery areas. The firm has found from some
researches that in New South Wales regional towns there is a shortage of delivery service
providing firms so Fast track couriers has found the growing opportunity in that area and the firm
is financially stable and sufficiently experienced for this business expansion.
Business operations
The sales manager of the firm has evaluated that some existing clients of the firm want the firm
to deliver its services to the regional offices of those clients. For meeting those demands of the
existing clients the firm is planning to expand its service area. For managing this goal the firm
needs to increase the number of delivering trucks and delivering agents. Currently the firm
assigns two drivers per truck for delivering the high load packages. For the fulfilment of new
goal the firm will maintain only one driver per truck and it will install an automatic liftgate for
heavyweight delivery. This plan of removing one driver from each truck will allow the firm in
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allocating 10 new trucks with the existing number of experienced drivers for the new routes. The
firm will require 10 new trucks with automatic gate lift which will cost the firm $60000.
Management and organizational structure
For the successful business operations and goal achievements, the firm will install GPS systems
in all the trucks for helping the drivers in navigating the locations of delivery. It will also assign
a PDA device which will be sent all the details of the delivery records with proper detailing of
starting and finishing the job (Beyer, et al., 2019).
Proposal
Fast Track couriers will provide proper training to the driving-related to the newly installed
devices and equipment for effective management. The firm needs to communicate with
employees for providing them all the required information including all the procedures and
policies.
Financial background
Currently, the annual sale of the firm is $17 million with a net profit of $1.9 million. For
purchasing new trucks the firm will borrow a business loan from the bank that will increase its
costs including the loan repayment cost, fuel cost, servicing cost etc.
Risks (risk analysis)
For extending the business operations and to perform these operations successfully Fast Track
Couriers needs to ensure that the labor which has been assigned for the work is sufficiently
skilled. To ensure that the labor is skilled the firm has not hired new persons for the new
objectives but it has assigned the existing skilled and experienced drivers for the operation.
Before starting the business operations in new region it will complete all the processing and
required criteria related to the licensing and permits etc. Due to increased operations there can
be risks related to the limited number of the staff so the firm needs to ensure the availability of
skilled labor (Severgnini, et al., 2018).
Conclusion
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The management and organizational structure of Fast Track Couriers helped the firm in
expanding its business operations successfully without any risk factor. Implementation of
effective development programs and strategies helped the firm in gaining and fulfilling the
opportunities available in the business environment.
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Plan for communicating the business plan to relevant parties
 For developing the business plan Fast Track couriers has analyzed its business operations
and all the requirements for business expansion in the environment. It has analyzed the
market in which the firm is going to expand its business and all the risks associated with
the market. Before developing the business plan for business expansion the firm has
conducted proper research about the area of operations. After conducting the research,
the firm has created a proposal to present in front of the management of the firm.
 Key stakeholders are the people associated with the business including employees,
management and bank from which the firm has borrowed the loan for business expansion
purpose.
 The management of the firm communicates with the employees for sharing the idea of
business expansion. The managing director requires all the information about resources
which are available and which are required for managing the operations, the logistic
manager requires all the information about available and required trucks and drivers.
 Fast track couriers have taken sufficient time for operating the successful business
operations by allocating the available time for different purposes like for providing
required training to the new recruited workforce (Yuliansyah & Jermias, 2018).
 After developing the business plan the firm will call a company meeting in which it can
provide all the information about the market requirement and business competition etc to
the employees. To communicate with stakeholders the firm can use email or can conduct
an official meeting.
 For ensuring the understanding of the roles of employees in the business plan the firm
needs to connect the employees to the plan with the help of employee engagement and
commitment for effective business operations. The firm needs to provide the required
information to the employees regarding the business plan.
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Part B: Strengths and weaknesses of the plan
Introduction
Quality training is the organization which provides training and development services to its
clients for increasing their business performance, profit and productivity. It manages the quality
of its training programs with the help of proper training material and follow-ups. It provides
qualifications to the students in the field of business administration, retail supervision, business
management, retail operations, transport, frontline management and distribution etc. Quality
training provides flexible work-based training which does not provide by any other training
provider in the area (Mangul, et al., 2019).
Comparison and contrast of the business plan of Quality Training with respect to the
effective business plan
Effective Business Plan Quality Training Business Plan
The objective of an effective business plan
should be business-oriented.
The objective of the business plan of Quality
Training is profit-based.
Before developing an effective business plan
businesses should conduct marketing research
about the operating area for successful
business operations.
Quality Training is operating in an unknown
market place without conducting effective
research which affects its business operations.
The business plan should be focused on
business expansion
Quality training operates only in New south
wales which provides limited clients for
serving
An effective business plan should be
adaptable according to the targeted audience
Business plan of quality training is focused on
some limited qualification and course
programs
An effective business plan should have
strategies as per the competitiveness available
in the market.
Business plan of Quality Training is focused
on its stand-alone services
Strengths of the business plan
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 Focused on the growth of the firm
 Ensuring client satisfaction
 Effective training analysis and client consultation
 Effectiveness programs
 Flexible and adaptable service provider as per the client needs
 Range of services
 Extended network
 Being up to date with the legislation and industry requirements
Weaknesses of the business plan
 Changing market trends
 Growing competition in the staff
 Lack of funding
 Other training organizations competing in the industry
 A limited number of resources and equipment
Conclusion
Performance of the firm can be measured by goals and objectives of the firm and effectiveness of
the business plan and strategies towards achieving those set goals and objectives. The
performance measures of the business plan of Quality Training are specific and focused on the
growth and profit maximization of the firm.
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Assessment 2
Performance Measurement
Performance measurement is the process which helps in collecting the information about any
firm and in analyzing it. A performance measurement system is a systematic approach which
helps to measure the performance of employees as well as of firm. This system helps the
organizations in fulfilling their goals and objectives with the limited number of available
resources and workforce.
Performance measurement system provides SMART framework for achieving organizational
goals:
 S: Specific
 M: Measurable
 A: Attainable
 R: Result oriented
 T: Time bounded
Performance of the business can be monitored through testing the performance measurement
system in the firm and through reporting the progress in a timely manner. Every firm has some
key performance indicators and objectives on the basis of which the performance of firm can be
evaluated. Fast Track Couriers is expanding its business operations in new business environment
and for that it has developed an effective business plan for successful business operations. Fast
Track couriers use key performance indicators for measuring the progress of business operations
of the firm. Performance measurement objectives can be classified into output centred and input
centred objectives. Input performance measurement includes the quality, resource utilization,
innovation, flexibility, speed, cost and dependability etc. Output performance measurement
objectives include competitiveness, financial performance etc (Augustyn, et al., 2019).
Quality
Quality of the product and services offered by the firm is helpful in measuring the performance
of the firm. Fast Track Couriers provides qualitative delivery services which help the firm in
maintaining the clients' trust and loyalty. Quality of performance of Fast Track Couriers can be
measured by measuring the quality of its services.
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Resource Utilization
Resources utilization is the objective which helps the Fast Track Couriers in measuring the
performance of the firm. It can be measured by analyzing the capability of the firm of achieving
the firm objective by utilizing the limited and available resources by efficient use.
Innovation
Innovation is the key factor of business performance management system as it helps the firm in
maximizing the quality of services and in enhancing the service area.
Flexibility
Flexibility is the objective of performance measurement which helps Fast Track Couriers in
adapting new techniques and strategies for successful business operations. Flexibility allows the
firms in managing their business operations in new and targeted business environment.
Flexibility helps in increasing the performance of the organizations in performance measurement
system.
Speed
Speed can be defined as the time between the customer’s request for the services and receiving
the services. Speed and on-time delivery of services will help the Fast Track Courier in
increasing the benefits as it helps in increasing the customers to the services. Faster operations
and service delivery help in reducing the inventory and storage cost also.
Cost
The organizations for whom the competitiveness is the major business objective, the cost is the
key factor of performance. The lower production cost helps in maintaining the cost of the
product lower which can help in increasing the sales of the product in the competitive market.
Decreased cost of products helps in increasing the profit of the firm.
Dependability
Dependability includes the availability of the services at the time of customer need. Most of the
time the quality of the operation is measured not from the quality of the service of the product
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but form the availability of service. This performance measurement objective helps in attaining
the customers. Dependability can increase the reliability of services and products in a cost-
effective manner.
Financial performance measurement involves the measurement of the company’s financial
performance in a certain period of operations including the allocation as well as the collection of
finance. Finance can be measured by measuring the capital availability, efficiency, liquidity and
profitability. Financial performance measurement allows the firms to use the available assets in
an efficient manner for generating revenue. Financial performance can be measured in the firm
by using income statement, balance sheet and cash flow statement etc. Stakeholders of the firm
include the investors, bondholders, creditors, employees and financial management of the firm.
Financial performance of the firm can be measured with the help of return on assets which helps
in determining the profit generated on every asset of the firm. Apart from this financial
performance of the firm can be measured through current equity ratio, debt ratio, earnings per
share etc. (Guzairy, et al., 2018).
Non-financial performance measurement objectives include the brand, knowledge, skills,
relationship with the customers, corporate reputation of firm, firm data and information, process,
patents of the firm, customer influence, value, customer experience, market share and brand
preference etc.
Benchmarking is the process which helps the firm in evaluating its position in the market of the
industry. Benchmarking is a systematic and structured process which helps the firms in
improving their services with the help of feedback process. It helps the firms in finding out the
success factor required for the firm. Benchmarking can be internal as well as external. In internal
benchmarking the firm sets the benchmark for its own acquired projects. In external
benchmarking the firm sets benchmarking by seeking the projects of other organization’s
projects. Fast Track Couriers sets external benchmarking for its services by seeking performance
measurement offered by the other firms (McDavid, et al., 2018).
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