Business Idea Selection and Pitch: Maritime Cargo - CQUni MGMT20143

This report evaluates the feasibility of an online business application for maritime container cargo shipments. It assesses various ideas, selecting the maritime cargo concept for its uniqueness and potential. The report identifies key improvements needed, such as addressing cyber security concerns and ensuring legal viability. A revised business model is presented along with best-case and worst-case cash flow projections, analyzing debtor days, creditor days ratio, and revenue growth. The analysis highlights the importance of sound debtor management and a balanced approach to revenue generation. This student-created assignment is available on Desklib, where you can find more solved assignments and past papers.

Running head: MANAGEMENT
Management
Name of the student
Name of the university
Author’s note

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MANAGEMENT
Executive Summary
The report focuses on the evaluation of an idea that have been developed based on the ideas
that are developed. Various ideas are evaluated and at the same time, the most suitable idea is
being taken into consideration. The idea that has been focuses on includes the online business
application of maritime container cargo shipments. The uniqueness of the idea makes it
suitable and the improvements that are to be taken place need to involve making changes in
the business model. At the same time, cash flow statement is provided that highlights the best
and worst case scenario for the business.

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Table of Contents
1. Idea evaluation.......................................................................................................................2
2. Idea Selection.........................................................................................................................2
3. Improvements.........................................................................................................................3
4. Revised Business Model........................................................................................................3
5. Cash flow projections.............................................................................................................4
Bibliography.............................................................................................................................11
Appendix..................................................................................................................................13

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1. Idea evaluation
The ideas that were developed by the group consisted of understanding the potential
innovative nature that can be implemented. One of the ideas that were developed is that of the
online business application of maritime container cargo shipments. This can help in the
smooth sailing of the ships and can help in the development of tracking devices, which in
turn can prevent ships from getting lost at sea. The idea can be considered as extremely
innovative mainly because such thoughts are rare among the inventors.
At the same time, another idea generated was the 3D virtual reality in which case
customers can change the manner in which reality is perceived. The drawback is that reality
may seem to cease for the people using the device as it can cause social separation. The
feasibility of the idea is the fact that it can help the customers to change reality and live in an
alternate created fictional universe.
At the same time, optimum utilisation of energy can help in reducing any form of
wastage and can provide the customers with an understanding of the value of sustainability.
The final idea is on the development of full featured low cost smart phones. This idea can
assist medium level customers to purchase the products but may lose out to big competitors
like Apple.
2. Idea Selection
The best idea in this case is the idea to generate online business application of
maritime container cargo shipments. Such an idea can be feasible mainly because it can help
in the development of the shipments and at the same time ensure that every cargo ship
possess the opportunity to remain on track for delivery. The reason for the selection of this
particular idea is the fact that customers can understand the movement of the ships and

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MANAGEMENT
customers can enquire about shipment data without having to rely on integration with the
shipping partners. The fact that such a thinking is new and can be considered as a manner in
which shipments around the world can be tracked and protected forms the basis for the
selection of the topic. Along with this, the idea generated can be used without having to
provide excessive costs of development. At the same time, the idea does not have potential
loss suffering chances like the idea of a cheap smart phone. Another reason for the selection
of this idea is the fact that it is considered as innovative as well as unique as opposed to other
business ideas. Other business idea can be applied in a common manner and are easily
available in the market. However, caring of the shipments is as important as the other statures
and thus, it is necessary that such an idea remain in the minds of the people for development.
Therefore, this particular idea is feasible and can be addressed effectively.
3. Improvements
The gaps that are required to be addressed before its pitch to the investors is the fact
that placing the tracking device and at the same time, maintaining its monitoring can be a
challenge. Moreover, in the modern world, cyber crimes are being committed at will and thus
the failure to contemplate the tracking devices may lead to cyber attack on the network.
Hence, as stated by Joyce and Paquin (2016) this can be considered as an important
improvement that is required to be adopted. At the same time, it needs to be legally viable
and require the authentication of ISO standards before its launch. The improvement can help
in pitching a concrete idea to the investors and hope to gain the full support that can provide
the idea with the required authenticity in the market.
4. Revised Business Model
(Refer to appendix)

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5. Cash flow projections
Best-case scenario
2017-2018 2018-2019
CASH
FLOW
Mar
ch
June Septem
ber
Decem
ber
Mar
ch
June Septem
ber
Decem
ber
Mar
ch
June
OPENING
BALANCE
$10,0
00
$4,25
0
$5,500 $8,950 $14,5
00
$20,8
50
$23,30
0
$32,65
0
$45,2
00
$58,7
50
Cash
incoming
$2,00
0
$5,00
0
$2,500 $5,000 $8,00
0
$2,00
0
$2,000 $2,500 $5,00
0
$5,00
0
Sales $1,50
0
$1,50
0
$1,500 $1,500 $1,50
0
$1,50
0
$1,500 $1,500 $2,00
0
$2,00
0
Asset sales $5,80
0
$5,80
0
$4,000 $5,800 $5,40
0
$4,50
0
$3,700 $5,800 $5,80
0
$5,80
0
Debtor
receipts
$8,00
0
$9,50
0
$12,00
0
$9,800 $10,0
00
$4,50
0
$8,700 $9,800 $7,80
0
$12,0
00
Other
income
$10,0
00
$15,0
00
$15,00
0
$15,00
0
$15,0
00
$15,0
00
$20,00
0
$20,00
0
$20,0
00
$20,0
00
Total
incoming
$25,3
00
$31,8
00
$32,50
0
$32,10
0
$31,9
00
$25,5
00
$33,90
0
$37,10
0
$35,6
00
$39,8
00
Cash
outgoing
Purchases $2,00 $2,00 $2,000 $2,000 $2,00 $2,00 $1,500 $1,500 $1,50 $1,50

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MANAGEMENT
(Stock etc) 0 0 0 0 0 0
Advertisin
g &
marketing
$2,00
0
$2,00
0
$2,000 $2,000 $2,00
0
$2,00
0
$4,000 $4,000 $4,00
0
$4,00
0
Bank fees
& charges
$1,00
0
$1,00
0
$1,000 $1,000 $1,00
0
$1,00
0
$1,000 $1,000 $1,00
0
$1,00
0
Interest
paid
$4,00
0
$4,00
0
$4,000 $4,000 $4,00
0
$4,00
0
$4,000 $4,000 $4,00
0
$4,00
0
Utilities
(electricity,
gas, water)
$1,50
0
$1,50
0
$1,500 $1,500 $1,50
0
$1,50
0
$1,500 $1,500 $1,50
0
$1,50
0
Track and
Trace
$500 $500 $500 $500 $500 $500 $500 $500 $500 $500
Lease/loan
payments
$5,00
0
$5,00
0
$4,000 $2,500 $2,00
0
$0 $0 $0 $0 $0
Rent &
rates
$450 $450 $450 $450 $450 $450 $450 $450 $450 $450
Repairs &
maintenan
ce
$500 $500 $500 $500 $1,00
0
$1,00
0
$1,000 $1,000 $1,00
0
$1,00
0
Licensing $100 $100 $100 $100 $100 $100 $100 $100 $100 $100
Insurance $8,00 $7,50 $7,000 $6,000 $5,00 $4,50 $4,500 $4,500 $2,00 $2,50

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MANAGEMENT
0 0 0 0 0 0
Superannu
ation
$0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Income tax $1,00
0
$1,00
0
$1,000 $1,000 $1,00
0
$1,00
0
$1,000 $1,000 $1,00
0
$1,00
0
Wages
(including
PAYG)
$5,00
0
$5,00
0
$5,000 $5,000 $5,00
0
$5,00
0
$5,000 $5,000 $5,00
0
$5,00
0
Total
outgoing
$31,0
50
$30,5
50
$29,05
0
$26,55
0
$25,5
50
$23,0
50
$24,55
0
$24,55
0
$22,0
50
$22,5
50
Monthly
cash
balance
-
$5,75
0
$1,25
0
$3,450 $5,550 $6,35
0
$2,45
0
$9,350 $12,55
0
$13,5
50
$17,2
50
CLOSING
BALANCE
$4,25
0
$5,50
0
$8,950 $14,50
0
$20,8
50
$23,3
00
$32,65
0
$45,20
0
$58,7
50
$76,0
00
Worst-case scenario
2017-2018 2018-2019
CASH
FLOW
Mar
ch
June Septem
ber
Decem
ber
Mar
ch
June Septem
ber
Decem
ber
Mar
ch
June
OPENING $10,0 $250 -$3,000 -$4,550 -
$4,00
-
$1,65
-$4,700 -$3,350 -
$5,70
$850

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MANAGEMENT
BALANCE 00 0 0 0
Cash
incoming
$2,00
0
$5,00
0
$2,500 $5,000 $8,00
0
$2,00
0
$2,000 $2,500 $5,00
0
$5,00
0
Sales $1,50
0
$1,00
0
$500 $500 $1,50
0
$1,00
0
$1,000 $1,000 $1,50
0
$1,00
0
Asset sales $5,80
0
$5,80
0
$4,000 $5,800 $5,40
0
$4,50
0
$3,700 $5,800 $5,80
0
$5,80
0
Debtor
receipts
$8,00
0
$9,50
0
$12,000 $9,800 $10,0
00
$4,50
0
$8,700 $9,800 $7,80
0
$12,0
00
Other
income
$10,0
00
$15,0
00
$15,000 $15,00
0
$15,0
00
$15,0
00
$20,000 $20,00
0
$20,0
00
$20,0
00
Total
incoming
$25,3
00
$31,3
00
$31,500 $31,10
0
$31,9
00
$25,0
00
$33,400 $36,60
0
$35,1
00
$38,8
00
Cash
outgoing
Purchases
(Stock etc)
$6,00
0
$6,00
0
$6,000 $6,000 $6,00
0
$6,00
0
$6,000 $8,000 $8,00
0
$8,00
0
Advertisin
g &
marketing
$2,00
0
$2,00
0
$2,000 $2,000 $2,00
0
$2,00
0
$4,000 $4,000 $4,00
0
$4,00
0
Bank fees
& charges
$1,00
0
$1,00
0
$1,000 $1,000 $1,00
0
$1,00
0
$1,000 $1,000 $1,00
0
$1,00
0

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Interest
paid
$4,00
0
$4,00
0
$4,000 $4,000 $4,00
0
$4,00
0
$4,000 $4,000 $4,00
0
$4,00
0
Utilities
(electricity,
gas, water)
$1,50
0
$1,50
0
$1,500 $1,500 $1,50
0
$1,50
0
$1,500 $1,500 $1,50
0
$1,50
0
Track and
Trace
$500 $500 $500 $500 $500 $500 $500 $500 $500 $500
Lease/loan
payments
$5,00
0
$5,00
0
$4,000 $2,500 $2,00
0
$0 $0 $0 $0 $0
Rent &
rates
$450 $450 $450 $450 $450 $450 $450 $450 $450 $450
Repairs &
maintenan
ce
$500 $500 $500 $500 $1,00
0
$1,00
0
$1,000 $1,000 $1,00
0
$1,00
0
Licensing $100 $100 $100 $100 $100 $100 $100 $100 $100 $100
Insurance $8,00
0
$7,50
0
$7,000 $6,000 $5,00
0
$4,50
0
$4,500 $4,500 $2,00
0
$2,50
0
Superannu
ation
$0 $0 $0 $0 $0 $0 $0 $0 $0 $800
Income tax $1,00
0
$1,00
0
$1,000 $1,000 $1,00
0
$2,00
0
$4,000 $8,900 $1,00
0
$11,0
00

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MANAGEMENT
Wages
(including
PAYG)
$5,00
0
$5,00
0
$5,000 $5,000 $5,00
0
$5,00
0
$5,000 $5,000 $5,00
0
$5,00
0
Total
outgoing
$35,0
50
$34,5
50
$33,050 $30,55
0
$29,5
50
$28,0
50
$32,050 $38,95
0
$28,5
50
$39,8
50
Monthly
cash
balance
-
$9,75
0
-
$3,25
0
-$1,550 $550 $2,35
0
-
$3,05
0
$1,350 -$2,350 $6,55
0
-
$1,05
0
CLOSING
BALANCE
$250 -
$3,00
0
-$4,550 -$4,000 -
$1,65
0
-
$4,70
0
-$3,350 -$5,700 $850 -
$200
Analysis
Key drivers of cash flow:
Debtor days: This signifies the number of times the organisation has collected money
from the customers. In the best case scenario it can be seen those debtor days in worst-case
scenario is 0.417145 whereas in case of best case it is 0.273754, which is lower. Cash flow
improvement can be done through sound development of debtor management.
Creditor days ratio: This signifies the time the company takes to pay the suppliers. In
this case, it is very important, as the company needs to pay their suppliers to keep the
business running. Any business would like to maximise its operations by delaying in paying
the bills. However, it has its pros and cons. one important factors is loss of goodwill for the
company. Since this is the star up the best-case scenario shows, they have achieved positive

11
MANAGEMENT
monthly cash balance after paying the debts. Another potential threat lies in court action
against the company.
Revenue growth: Hart and Nisan (2017) have discussed that companies like to buy
more to power revenue generation however few realise the issues, which come with it. More
products mean more cash layout. In this case, the best-case scenario shows a balance between
buying new products where the firm has declined its cash flow in buying new stocks or for
repairing issues. Therefore, they have observed a rise in the monthly cash. On the other hand,
the worst-case scenario shows a rise in buying stocks actually proved detrimental to the
company.