Business Management Report: Analysis of Mobile Money Transfer Business

This report presents a comprehensive business plan for a mobile money transfer service, focusing on real-time money transfers facilitated by Mobile Network Operators (MNOs) and Mobile Virtual Network Operators (MVNOs). It outlines the business model, which aims to provide financial services, including money transfers and potential expansion into a mobile money banking system. The report analyzes the industry, highlighting its potential for growth and competition from established players. It also details the company's vision, mission, and business strategies, including internal and external environmental factors like business structure, employee expertise, competition, legislation, and economic conditions. Furthermore, the report addresses potential risks such as decision-making delays and discusses risk assessment procedures. The importance of planning and a suitable company structure are emphasized. The report concludes with references to support the analysis.

Running head: BUSINESS MANAGEMENT 1
Management and Business Context
Name:
Institution:
Date:

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Introduction
The business idea is based around mobile money transfers and the convenience it brings to
send and receive money from any part of the world in real time. It will be based on a Mobile
Network Operators (MNO) or still can be supported Mobile Virtual Network Operators
(MVNO). The primary idea behind this idea is to enable people in countries to remit money
from where they are to mobile networks of their intended receivers(Aaker, 2001). Since most
money transfer business from country to country takes a minimum of two to three days for
the receiver to get the money, in mobile money transfer the money is received in real time
and is converted by a currency converter. Example, if a husband is sending money from
Australia in Australian dollars to the wife in India, the money sent will be directly converted
to Indian rupees and received in real time.
The advantage of this business is that it can be developed into many platforms including
mobile application systems where the sender is able to engage with the receiver if the money
has been received. Using the currency converter, any form of currency could be transferred
but at different rates and at different times(Brown & Clinton, 2010). The business model is
aimed at providing financial services right from transfers and growing the business to become
a mobile money banking system.
Industry
The company will operate on a telecomm industry although it may also be in the financial
and banking services industry. This is because it uses the mobile money operating systems to
get its network for transfer of services and transmission of information and acts as a financial
service provider. It has an unlimited potential to grow as a very potential business idea
coming into play when a lot of financial services are needed across countries. The industry is
dominated by big players but their idea is not based on real time money transfers.

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Size
The size of the start-up is not that big. Firstly, it will be a national company and transferring
money to neighboring countries but will be aiming to cross the continents based on the
impact of the business in transformation of lives. As a small sized company compared to its
competitors, its startup capital is between the ranges of 1 million to 1.5 million
dollars(Business and management practices in greece, 2014).
Countries of operation
It is operating in Australia, the Americas, Asia and Africa. Europe too has not been left
behind in operation of the business.
Vision and mission
The vision of the company is to provide mobile money transfers nationally and
internationally through the use of mobile phones in real time. The mission is to be the number
one provider of quality money transfer services efficiently, fast and affordable(Kew &
Stredwick, n.d.).
Business Strategy
As part of its innovation strategy aimed at offering its customers increasingly modern, simple
and efficient channels to carry out their transactions and thus satisfy their financial needs with
the highest quality, BBVA Provincial offers the new service "Mobile Money", which Allows
you to send cash from the online bank of the entity to another person's cell phone, to have it
withdrawn at an ATM of the institution, without the need for a Debit Card
Access to this new service is very fast and simple. To do this, customers must enter the
website www.provincial.com and select the "Mobile Money" option, place the beneficiary's

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cell phone number (customer or not of the financial institution), the name and amount to be
transferred.
With this action, BBVA Provincial takes a step forward in its objective of making life easier
for its customers, by facilitating the sending of money through Proven Web to customers and
non-customers, by making available the most extensive network of ATMs Country(Lee-Ross
& Lashley, 2011).
The entity currently offers new technological solutions that represent a new way of
understanding banking, closer to its customers, who now have new channels to interact and
carry out their transactions where and when they need it, with total independence, autonomy
and greater security.
Internal and external environmental factors affecting the business
Internal factors and external environmental factors complement the businesses vision and
mission strategy.
Internal factors may include the following
Business structure- the business does not need a complex organizational structure. In fact a
simple organizational structure is more efficient than a complex where decisions would take
quite a long time before they are affected or implemented.
The type of employees that have been employed by the business will also affect the business.
As a startup it will require experienced staff that has previous knowledge of what is going on
in the money transfer systems. Other internal environmental factors include the business
strategies of market penetration which includes marketing and financial capacity of the

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company(Liu, Jiang, Ma & Chong, 2007).
Competition
A degree of competition that is brought by established companies and upcoming in the
industry. Competition is important for the formulation of the business strategies and the
realization of the business vision and mission.
.Legislation
Legislation affects business activities in all spheres. Financial services industry is most
affected by the legislation due to tighter and probably very tough laws on transfer of money
from one jurisdiction to another(Liu, Jiang, Ma & Chong, 2007).
Internal policies of a company also affect the business activities. External influences like
political environment, taxes and organizational culture also affect the environment of the
business.
Economy
The economy is an external factor that makes the success of your company. Your customers'
ability to pay directly impacts your base, regardless of whether you are selling a product or
service. Other internal environmental factors include the business strategies of market
penetration which includes marketing and financial capacity of the company.
Risks that affect the business
Limbo. Everyone thinks, nobody decides.
In many projects, all say to ensure the success of the project involved, however many
discussions may take a long time to give light decisions because things are in the meeting
room and no one takes responsibility for decisions Finally decisions are taken in an

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ambiguous and unconsolidated way, this implies two risks: 1. that the decisions have been
taken wrongly and No one takes care of that they are carried out when they must be
executed(Nelson, 2012). The fall of implantation is imminent.
What risk assessment procedures should be applied by the external auditor to avoid any doubt
on this issue and what implications would be generated in your financial report?
In order to answer these questions or any question related to the continuity of the operation of
any entity, the auditor should refer to the regulations to which the Administration or
Management of the company is attached in the recording and control of the financial
information and, Therefore, in the preparation and presentation of the basic financial
statements.
Accounting regulations
Unless evidence is obtained to the contrary, normal and frequent operations carried out by the
economic entity will be expected to continue in the future on a permanent basis for the next
twelve months or more, as of the closing date of the financial statements. . The industry is
dominated by big players but their idea is not based on real time money transfers.
Important Functions of the business organization
For this set up the most important function is the setup of a company structure that is ready to
have the vision of this company implemented to the fullest. Planning as a function of the
business is needed to make sure that the company strategies are implemented of having a
good mobile money transfer system.
However, it should expressly indicate any situation that causes a deviation in the progress of
the entity or let you see in the immediate future problems of business continuity; For
example: suspension of operations, bankruptcy, dissolution, liquidation, merger (in the case

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of a merged company), unforeseen physical accidents or caused by third parties(Paavilainen,
2002). Also, any uncertainty in the continuity of the entity, due to insufficient working
capital, recurring operating losses, negative operating flows and breach of contracts should be
disclosed. It will also be important to disclose, where appropriate, the action plans to be
implemented or implemented by the entity, in order to solve the problem and / or uncertainty
that may arise.

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References
Aaker, D. (2001). Developing business strategies. New York: J. Wiley.
Brown, J., & Clinton, M. (2010). Horse Business Management: Managing a Successful Yard,
4th Edition. John Wiley & Sons.
Business and management practices in greece. (2014). [Place of publication not identified].
Kew, J., & Stredwick, J. Human resource management in a business context.
Lee-Ross, D., & Lashley, C. (2011). Entrepreneurship and small business management in the
hospitality industry. New York: Routledge.
Liu, D., Jiang, W., Ma, W., & Chong, A. (2007). Chinese business strategies. Singapore:
Asiapac.
Nelson, W. (2012). Advances in business and management. New York: Nova Science
Publishers, Inc.
Paavilainen, J. (2002). Mobile business strategies. London: Addison-Wesley.
Price, A. (2015). Human resource management in a business context. [Mason]: South-
Western Cengage Learning.