BSBMGT617: Business Plan Development for Fast Track Couriers, NSW

This report provides a detailed business plan for Fast Track Couriers, a courier firm operating in New South Wales for the past 15 years. The plan outlines the company's background, products, services, marketing activities, and business operations, including its management and organizational structure. The proposal focuses on expanding delivery routes from metropolitan Sydney to regional NSW to increase revenue by 40% over the next three years. It addresses financial requirements, risk analysis, and communication strategies, including key stakeholders, positional requirements, and timeframes for implementing the new business plan. The report also includes an analysis of the strengths and weaknesses of the completed business plan and comments on various aspects, such as performance and level of understanding. The firm aims to enhance its business and surpass local boundaries by introducing organizational changes and incorporating new technologies.

Running head: BUSINESS PLANNING
Business planning
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1BUSINESS PLANNING
Executive summary:
The report will provide details regarding the management and organisational
structure and moving forward it will discuss the proposed plan of business
improvement to provide the scope to have future growth. Next, the report will provide
risk analysis of the proposed business plan considering the details given regarding
the firm. In next part, the report will provide communication strategy defining
important details regarding the business plans. In this section the report will provide
information regarding the key stakeholders and information regarding the position of
each person and relevant timeframe for implementing the proposed business plan.
Next to this, in the second section of the report, it will discuss strength and weakness
of the completed business plan considering the structures given in the text book. To
conclude, the report will provide comment on the various aspects showcased in the
business plan considering the discussion on areas like performance of the business
plan, level of understanding and others factors. Through analysis it has been found
that, the firm is now willing to enhance its business to the NSW with introducing new
business plan. Through the analysis it has been found that the business is
performing well in its present place of operation, however, with an aim to surpass the
local boundary, the firm is willing to bring in organisational change.
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Table of Contents
Part A:...........................................................................................................................3
Introduction:..............................................................................................................3
Background of the business:.....................................................................................3
Business products and services:..............................................................................4
Marketing activity:.....................................................................................................4
Business operations:.................................................................................................5
Management and organisational structure:..............................................................5
Proposal:...................................................................................................................6
Financial background:...............................................................................................7
Risk analysis:............................................................................................................8
Conclusion:...............................................................................................................9
Communication strategy:............................................................................................11
The process of developing the business plan:.......................................................11
Key stakeholders:....................................................................................................11
Positional requirement:...........................................................................................11
Timeframes:............................................................................................................11
Plan to communicate the information:....................................................................11
Plans to implementing the new business plan:.......................................................12
Part B:.........................................................................................................................13
References:................................................................................................................15
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3BUSINESS PLANNING
Part A:
Introduction:
Business planning is one of the essential tools of management that aids the
managers to chalk out the plans for new business (Adams 2015). With a well
designed plan for business a firm can set its vision, mission and strategy for growth.
This is also essential for attracting new financial source that can invest in the
business (Ward 2016). This report is a business plan for the Fast Track Couriers,
which is willing to go for a change in coming days. This report is meant to develop a
business plan to support the company’s strategic and operational goals. In order to
perform this, it will provide detailed information regarding the firm’s operation and
then it will discuss the productivity and performance targets of the key stakeholders.
To conclude, the report will provide comment on the various aspects showcased in
the business plan considering the discussion on areas like performance of the
business plan, level of understanding and others factors.
Background of the business:
This report is based on the Fast Track Couriers Company, which is a courier
firm. The company is operating in New South Wales since last 15 years. Fast Track
Couriers is medium sized business that makes its most of the customer from small to
medium sized business. Running long business is essential for having good
reputation (Ward 2016). Owing to its long range of service and long background of
courier delivery since last one and half decade it has good reputation. Besides this,
the market place of operating of the firm is vast that provides it ability to offer their
customer value for money service. Service reliability is one of the important factors
for substantial growth (Charter and Tischner 2017). Over the year the firm has faced
huge growth in its business owing to their service reliability. In this regard it is
important to mention that the firm is known for its reputation. Age long quality service
and vast area of operation has aided the firm to achieve this acknowledgement.
Company prefers direct sales mode of operation, which is being done through
internet listings, email marketing, telephonic contacts and other modes of direct
business. According to the given information, owners of the business are risk
averters. They have detailed information regarding the ongoing success, which
according to them is germinated through close personal ties among the employees,
experienced team and high reliability index (Dachner, Ellingson and Tews 2017).
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The firm provides its service throughout the Sydney metropolitan area, however due
to limit in geographical location the firm has constrained its business only in this
region. According to the sales manager of the firm, due to lack of scope to provide
service to the regional office of the customers, Fast Track Couriers lose most of its
customers (Keyte and Locher 2015). However, it has been observed that the firm
has retention level of 87% of their existing customers owing to their quality service
and wide range of connectivity. In this scenario, the firm is willing to roll out a new
business plan which will aid it to achieving its organisational goal through fulfilling the
personal goal of its present employees.
Business products and services:
Fast Track Couriers is one of the medium sized courier companies, which is
being operating in New South Wales since last 15 years. Primary business operation
of the firm is delivering medium to large size packages across various metropolitan
Sydney. Direct sales process is beneficial for enhancing business (Chang 2016). As
the medium of marketing the firm uses direct sales process, which is gained through
telephonic calls, internet listing and email marketing. Owing to their vast range of
market and value for money services, the firm is acknowledged as one of the reliable
courier service provider in the country. According to the statistics provided, the firm
has admirable rate of retention for existing customers. An admirable level of
retention rate, which is as high as 87% highlights that the firm provides quality
service to their customers. Expanding business is one of the ways to enhance
revenue (Hyder 2016). Though the firm has limited scope to expand its operation
due to geographical boundaries, presently it is willing to expand its business to
regional areas in New South Wales. With an average 5% rate of increase in profit,
the firm has sustainable amount of capital to withstand in future. With an aim to
surpass the local boundary and achieve customers from various areas outside its
present market the firm is willing to go for expansion in its business.
Marketing activity:
Fast Track Couriers operates in metropolitan Sydney, since last 15 years. As
the medium of marketing activity, the firm uses direct business policy. It uses email
marketing, telephonic calls and internet listing as its mode of marketing activity. The
firm provide GPS fitted trucks and PDA to the drivers that aid it to locate the actual
place of delivery. Besides this, its high value for money service has aided the firm to
promote itself through direct marketing (kotler 2015). However, it has been observed
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by the managers that the firm is losing its customer base in recent days due to lack
of scope to provide service in the regional office of the client located outside the
Sydney metropolis. Thus, recently the firm is willing to enhance its scale of operation
and as the marketing activity it highlights the same to their customers to attract new
prospect customers.
Business operations:
Through consultation with the key stakeholders it has been found that the firm
is aimed to enhance its business to the NSW areas. Besides this, the firm is targeted
to enhance its revenue by 40% within the next three years. The firm communicate
with its workers through emails and PDA, GPS is there to assist the drivers regarding
pick and drop location. Employees are closely attached with each other making it
hard for implementing new plans. Employees enjoy being part of a firm if working
environment is good (Dawson, Veliziotis and Hopkins 2017). According to the
drivers, working environment is good for them, and they enjoy being a part of
company. Coming to the employee population, it can be seen that head of the
employee population is covered through the individual contracts and their salary
varies from $32,000 to $75,000 annually. Under the logistics team there are drivers
who are covered through award system. Salary of the drivers is fixed at $45,000
annually. The firm is willing to bring in expansion plan, which will require additional
10 trucks and newer technologies like GPS, PDA and automatic lifting tool for the
packages. On the other hand, it is being argued that firm need to shelf its lower
performing employees in order to reduce the operation cost and retain good
performance (Ton 2014). Magnitude of unionisation is high among the drivers, thus
the firm is willing to shelf those employees who are considerably risky for retaining
(Laroche and Salesina 2017). This will provide stimuli to achieve organisational goal
and boost to enhance the business beyond the present market.
Management and organisational structure:
According to the given information, Fast Track Couriers is family owned business,
where three family members are performing as the management team. Management
is responsible for controlling the business and approving future business decision
(Kerzner and Kerzner 2017). Managing director of the firm operates under the
management team, who oversee all the managing head of the business.
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Figure 1: organisational structure of the Fast Track Couriers
Source: (Created by Author)
According to the figure 1, it can be seen that Fast Track Couriers has five
office support managers namely logistics manager, administration officer, human
resource office, finance manager and sales manager are the operational pillar of the
firm that oversee the financial, logistics and other organisational tasks (Miocevic and
Morgan 2018). Under the logistics manager there are 20 truck drivers and under the
finance manager there is accounts clerk who oversee the financial performance and
billing of the employees.
Proposal:
Fast Track Couriers is aimed to grow its business and enhance its profit over the
next three years. The firm is willing to grow its business through expanding its
delivery routes from Sydney metropolis to regional NSW. In this scenario, the firm
need to commence its new business within the next 12 months. It will help the firm to
increase its sales by 40% over the next three years according to the estimation. In
addition to this the according to the proposed plan, the firm is targeted to reduce its
driver employment. At present, the firm allocates to drivers for every truck in order to
ensure loading and unloading and proper transportation. It is proposed that firm can
use new technologies to enhance the efficiency and productivity of the employees
(Hijazi et al. 2016). Thus the proposed plan suggests that the trucks will be
accommodated with latest GPS technologies and PDA will be provided to the drivers
for easy transportation. Business proposal argues that with aim to increase the
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Management
Team (owners)
Managing
Director
Logistics
Manager
Truck Drivers
x 20
Administration
Officer
Human
Resources
Officer
Finance Manager
Accounts Clerk
Sales Manager

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business, the firm need to accumulate additional 10 new trucks at a cost of
$600,000. In addition to this, old trucks will be having automatic lift gate at a cost of
$10,000 per truck. In order to expand the business, additional loan need to be taken
by the firm. Drivers are negative to change, thus the firm need to introduce better
pay structure and incentive framework. In order to trace the better performing
drivers, it is proposed that firm can use KPI model of employee performance
assessment (Parmenter 2015). Diversification in the management framework is
required by the firm in order to reduce the inefficiencies in the management.
Financial background:
Fast Track Couriers is one of the well established courier delivery service
providers that has been providing service since last one and half decade. However,
the firm is now willing to enhance its service to various regions of NSW owing to the
saturated market in Sydney metropolis. As the targeted customer, the firm considers
small to medium sized firms in the metropolis of Sydney and 80% of the earning of
the firms comes from these sources. Current annual sales figure of the firm is as
high as $17 million and the net profit is $1.9 million making it a financially strong
organisation. One of the major factors that reduce the net profit is loan repayment
(DeYoung et al. 2015). Scenario is same for the Fast Track Couriers because the
firm have to repay more than $200,000 annually as their outstanding loan in case of
expansion. Besides this, administrative costs crowd out a large chunk of revenue
earnings of the firm (Juhn et al. 2018). According to the forecasting, with rise in
business as the administrative cost the chosen firm has to shelf more than $100,000
annually leading to fall in revenue. With the expansion of business, firms are ought to
face higher cost of operation, management cost and various other costs required for
running the business (Forsgren 2017). Aligned with the theoretical perspective of
expansion, the proposed expansion plan of the firm, is about to increase the financial
cost of the firm. According to the estimation, the firm is expected to incur higher cost
of operation and if the firm opt for new loan, then it will enhance the repayment figure
too. In addition to this, operation costs of the firm will increase to $2.2 million due to
rise in number of trucks, which will cause additional fuel cost and servicing charge.
On the other hand, if the firm goes for expansion, then there will no shift in labour
cost and the annual sales figure is about to touch $22 million within next one year. It
is a common phenomenon that with rise in business, firms are able to provide better
service to large amount of population (Drucker 2014). Considering this, according to
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the estimations, annual net profit of the firm is about to hit all new high. Forecasting
of the net profit figure argues that, within next one year, the firm will have annual net
profit figure of $3.2 million annually.
Risk analysis:
Risk analysis is one of the essential parts of every business plan. It provides
the management ability to trace opportunity and threat of the business plan and
assess the future implication of implementing the proposed business plan.
Threats Opportunities
New business:
If the firm extends its business, then it
will be considered as the new business
in NSW area.
 Unknown firm in the new market
 Lack of information regarding the
prospect clients
These factors will guide the firms to face
struggles during its initial days
New business:
If the firm extend its business to the
NSW, then it can also be regarded as
the opportunity for the firm (Lovelock
2011). Clean history and error free
service
 Bringing in door-to door service
 Can act as the alternative to the
clients who are unhappy with
their present service provider
These factors will aid the firm to become
successful in its new venture.
Small business:
 The firm is operated by the owner
that can lead to inefficiency in
business
 Limited scope of operation
 Limited customer base
 Staff and equipments are limited
Small business:
 The firm is flexible to the
requirement of the client
 It has lower operation and star-up
cost compared to its rivals
 Able to survey new areas of
operation
Competitive market place:
 Many firms operate in the NSW
areas that has existing customer
base with high retention rate
(Lovelock and Patterson 2015)
Competitive market place:
 Vast experience to provide value
for money service
 High retention rate in the present
market
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 Wide range of service and door-
to-door service
 Attractive marketing plans to
promote the business to the new
customers
 Lucrative plans to join the firm as
customer and attractive incentive
structure for joining as employee
Funding:
 The firm need additional loan
from the government authorities
or banks that will lead the burden
of repayment on the firm.
Funding:
 The firm will offer wide range of
training services to the new and
existing employees
 Market training and attract
incentive package all set to be
offered to the new employees
Enhanced voluntary retirement:
Once the firm imply the proposed
business plan, then it is ought to face
higher voluntary retirement.
 Reduced employee bonding
 Tracing the good performing
employee is subject to further
enhancement of the
management cost
Ensuring availability of skill labour:
 Providing national recognised
qualification. For instance,
Certificate IV in Business,
Certificate III in Transport and
Distribution is essential (Jossec
and Shananhan 2015). It will be
provided to employees as the
training and recruitment strategy
 New employees will be chosen
based on the availability of
license for transportation
 Stand alone training process for
time management, customer
service and personal
effectiveness enhancement
program need to be introduced
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Conclusion:
Through analysis it has been found that Fast Track Courier is one of the
medium sized courier delivery service providers, which has been operating since last
15 years in Sydney metropolis. The firm is now willing to enhance its business to the
NSW with introducing new business plan. Through the analysis it has been found
that the business is performing well in its present place of operation, however, with
an aim to surpass the local boundary, the firm is willing to bring in organisational
change. For instance, it has been found that the firm will eliminate the poor
performing employees and employ those employees who have license and prior
experience. Next to this, the report has found that the firm will introduce new training
and certification mechanism to bring in efficiency among the workers. Though there
will substantial amount of resistance to the change, the firm is now determined to
bring in change.
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Communication strategy:
The process of developing the business plan:
The business plan has been developed by following the financial forecasting.
In addition to this the business plan has used marketing strategy as well as financial
management techniques to chalk out the proposal for expansion. Besides this, the
report has performed strength and risk analysis to trace the market opportunities.
Key stakeholders:
The business is mainly operated by the family members. In the management
team family members are present and they are the key stakeholders. Besides this
managing director is also the stakeholder of the firm. In addition to this, business
pillars like logistics manager, Administration officer, Human resources office, finance
manager and sales manager are also the stakeholders of the firm.
Positional requirement:
Employees of the firm are closely linked with each other. As the medium of
information sharing, the firm uses email and drivers are allocated with PDA for
proper information sharing. Printed monthly news later is issued to the drivers and
office based staffs can access the manuals.
Timeframes:
Business
proposal
Setting
strategy
Market
survey
Implementing
new plan
Starting
operation
of new
plan
1st year   
2nd year    
3rd year   
Figure 2: Proposed time frame
Source: (created by author)
Plan to communicate the information:
According to the proposed plan the firm need to introduce integrated
communication system that will allow all the employees to communicate seamlessly.
Though the drivers are resistant to change, managing team is easily convincible.
The firm need to use KPI model to trace the good performing workers and eliminate
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