Kaasagat Freight Company SWOT Analysis - Example

Confidentiality agreement The person undersigned acknowledges that the information provided by _______________ in this business plan is confidential; the reader is therefore obligated to keep the business plan as discrete as possible unless allowed to disclose with the written permission of _______________. The reader acknowledges that the information that is found in this plan is confidential and is not comparable to information that is found in the public domain. The reader further understands that any disclosure of this information will lead to serious damage or harm to _____________________. When this document will be requested, it will be immediately returned to _______________________________ Signature Name This is a business plan and it does not imply any form of securities that are being exchanged. EXECUTIVE SUMMARY Freight business is gaining popularity. This is catapulted by the growth of international trade. With globalization, multinational corporations are entering new markets and local companies are entering foreign markets in search of new markets. There has been an increase in imports or raw materials and tools of trade for this organization. This is good for the freight business and I feel that this is the right opportunity to start a freight business. There is a lot to gain from and am convinced that the business will get the required funding. This paper ill look at the requirements that will be needed in order to start freight business. The business s located in Victoria, Australia. As new businesses are started and the existing businesses strive to enter into new markets, there is also the urge to get goods and services from foreign places. It is therefore a good venture as the business is set to thrive and delve in a new market. Kaasagat is a proposed name for this business and it is a sole proprietorship type of business. It has got three major departments that work independently, these departments include; the security and transport department, the sales department and the accountancy department. All these departments are headed by the human resource manager who is answerable to the sole proprietor of the business. Each department has a distinctive role as regards to making the business grow and develop. Each department has a departmental head in charge of each departments well being. In order for this business to grow it will have to invest in good salesmanship and a thorough advertising policy. The sole proprietor is the owner of the business and there is little distinction between the business and the owner. The owner collects the profits and pays up to the liabilities of the business. He or she employs the human resource manger and is liable for making major decisions on the business such as liquidation Table of Contents Confidentiality agreement 1 EXECUTIVE SUMMARY 2 Table of Contents 3 1.Introduction 5 1.1 The Company 5 1.1.1The Services 5 1.1.2 The Market 6 1.1.3 Financial considerations 6 1.4.2 Pest analysis 12 Chapter 2 17 2.0 INTRODUCTION 17 2.1 Mission 17 2.2 Keys to success 17 2.3 Objectives 18 Chapter 3 19 3.0 Company summary 19 3.1 Company ownership 19 3.2 Start-up summary 19 3.3 Competitive analysis 20 3.4 Target market 20 Chapter 4 22 4.0 FINANCIAL PLAN 22 Chapter 6 24 6.1 Business structures and functions 24 6.1.1 Obligation of a carrier 24 6.1.2 Care and diligence required 24 6.1.3 Obeying directions 24 6.1.4 Conflict of orders 24 6.1.5 Stowage and deviation 25 6.1.5 Freight delivery 25 6.1.6 Delivery place 25 6.1.7 Notice for undelivered freight 25 6.1.8 Consignee refusing acceptance 26 Chapter 7 27 7.1 RISK ASSESSMENT AND RISK MANAGEMENT 27 7.1.1 Consultation between the employees and their representatives with the manager 27 7.1.2 Tasks of employees 27 7.1.3 Company manager tasks 27 Works Cited 29 1. Introduction The mission of Kaasagat Freight Company is to fulfill shipping brokerage services i.e. purchase contracts, shipping, warehousing, and delivery timetabling. This company will deal with special and cultural forwarders from Australia to China. Our consultation services will be created under Taach-Asis co-ops. 1.1 The Company Kaasagat Freight Company will be a partnership registered n the Victoria for tax purposes. It is initiated by Raymond Lelei, a retired bank manager with Desmond Keitany. Mr. Lelei has been a good group leader and managing finances for 12 years. The company will be having a limited number of shareholders and has no plan to go public. It will have its main office at Victoria, Australia. It has a plan for facilities such as conference room and office spaces. This company plan to begin its services in July. 1.1.1The Services Kaasagat provide exhaustive freight brokerage and inventory consultation services. This may include: Client-server identification Purchasing, contracting and consulting Shipping Warehousing Delivery 1.1.2 The Market Kaasagat will be concerned with servicing only three clients, the promise shops of Victoria, royal and Taach-Asis co-ops. For these market segments, we have agreed on endorsements placing us on position to services them. The profitability in these tree markets are expected to excel, bearing in mind that he promise draws thousands of tourists every year. 1.1.3 Financial considerations To start, it needs assets i.e. expenses and cash needed to support the running of the business until revenues reach an expected limit. Company liabilities n most cases come from bank loans from bank of commercial investment and already we have obtained private investors. The company expects to reach profitability in one and half years and does not face any serious cash flow problems. We expect about 4500 per units per month will produce a break-even point. Initial capital required includes an expense and the money required to aid the business until it is in a position to collect revenues enough to sustain its operations. However, the company liabilities will come from renting services, taxation, labor, compliance with the law. Credit facility will be obtained in the form of a short term and a long term loans. The short term loan is meant to take care of the labor whereas the long term loan can take care of advertising cost, the rent and the taxation on the business. The business is expected to realize profitability in about two years. With the loans and personal investment the business is not expected to endure constraints in the cash being injected into the business. The profits to be realized per month will be infinite as it is yet to be established how many clients can be reached in a particular duration of time. Chapter 1 1.2 Reasons for choosing this specific business - the capital of Australia offers a strategic position close to many people, industries and firms due to it's dense population. This therefore allows room for growth to less populated regions. - Victoria has been known to have high class meeting rooms and is widely known as business destination for holding meetings and conferences. Therefore, acquiring a meeting facility offers adequate leverage to the business objectives. - the availability of credit facility from banks in Victoria and government agencies available in the capital of Australia. The government of Australia offers support programmes to businesses that open up in Victoria for the sake of commercialization and development. - there is adequate labor market in Victoria as the population of Australia is known to be educated. -the immense numbers of industries located in Victoria are an incentive to this business as there is available market. -a good infrastructural facility allows easy transportation of goods from their source to their respective destinations. - Africa offers a good source origin for important raw materials for industries found in Victoria and also markets found in Africa are a potential source of income if exploited in terms of imports and exports. - Proximity to legislation services and the population 1.3 Current trends that can impact the business -the Australian Government has had the duty to create an enabling environment for developing business and industry in Australia. This has been with the motive to increase commercialization and development. Kaasagat Company can benefit from this as it can easily acquire credit facility in terms of loans, good infrastructure. -with the development of meeting facility and hotels this provides an adequate room for developing a consultancy department and a warehousing facility. -Conventions and tourism-the largest investment in the capital of Australia are the businesses related to the tourism sectors. Kaasagat Company can thrive in these surroundings and collect a reasonable amount of revenue. - Australia's educated labor force-Victoria has a high population of computer literate people, therefore Kaasagat Company can benefit by having a well educated workforce. - Security and the cosmopolitan city that Victoria is. This will serve to offer security as the rate of crime is relatively low. -the location of Victoria can be considered strategic for its main commercial and agricultural cities. It is also located between Sydney and Melbourne and thus the railway and air links are reliable for Victoria thus benefit of Kaasagat Company. 1.3.1 External trends The third parties have the notion that most import and export businesses operate at a regional level. This has only served to cut down the scope of their market and also limited the ability of export import businesses to cater to the needs of the third parties. The third parties are opinionated that by increasing the scope of operations to a wide geographical areas for instance to a country-wide level and even at an international level will benefit both the export import business and also the individual firms, business and individuals in need of import export service. Secondly, the third parties are of the opinion that few export import businesses offer a wide range of services that include brokerage import export services and also warehousing services. When a business of this caliber crops up then it can serve the unsatisfied customers and also collect enough revenue. 1.4 Feasibility report -Kaasagat Company aim at creating a good reputation by maintaining close contact with its clients and therefore with time the clients differentiate good service delivery from Kaasagat Company. -there are limited competitors offering this wide range of services from security services for import and export goods, warehousing the import and export goods, import and exporting serving and the delivery of import and export goods. -government support; the government has gone a notch higher by offering an enabling environment such as credit facility, improved infrastructure such as roads and meeting facilities. -Availability of market- Victoria has a high population with many tourism based businesses, this is a willing market and therefore the market for the services for this business should not be a problem. - Competitive businesses have been found to be involved in the export import service industry, however, the trade on a regional basis. This is an advantage to this business as it plans to operate at an international level and also at a countrywide level. This when coupled with warehousing will provide this business with enough leverage to collect adequate amounts of revenue. -Victoria is located on the judicial centre of Australia and therefore the verifying the legal documentation of this business will be less tedious and less time consuming. - Victoria is a tourist attraction centre and therefore foreigners and locals can be accessed by the business and this has the effect of increasing the scope of the market. Secondly, monetary exchange between the tourists and the locals with the required documentation also serve as a source of revenue to the business. -Australia is a continent and has international access to other nations such as Indonesia and New Zealand via the international waters. It also has access to other nations via facilities such as airports. With this in mind it can offer brokerage services to firms, businesses and individuals and earn some revenue. - Australia has large land coverage and therefore the business is at a position to expand to cover a large geographical area once it has started operations and earned enough revenue to enable it to run independently without monetary injections from either the loans or the sole proprietor. - the business has an allowance to merge with another business to form a larger organization. The sole proprietor can also be in a position to form a partnership with other business individuals. This as a result offers the business opportunities to not only grow but it enables the owners to pool financial resources to enable the business to expand and carry out financial transactions successfully. -the fact that the business will be operating at an international level gives its employees and the owner exposure to a wide market and also betters the personal skills of the employees. 1.4.1 SWOT ANALYSIS Strengths Kaasagat Company can enjoy government support as the government is at a better position to create an enabling environment for trade. Secondly, with enough credit facility Kaasagat Company is at a capable position to enjoy market control as few firms offer a wide range of services as Kaasagat Company will offer. Thirdly the educated work force is a benefit to Kaasagat Company as the good extent of the population is computer literate. Fourthly, in the import and export business profits or rather revenue is sure to achieve. Fifth, the business is able to expand to cover a wider geographical region and cover other cities such as Sydney due to the unique range of services such as mobile offices. Weaknesses The initial capital required to start up this business is quite high as it require a large labor force, a lot of cash for its operations, rent and taxation fees. When the initial capital is not adequate then the business is bound to fail. Another weakness is the high cost of operation. Whenever a business employs mobile offices it can reach many people at the expense of a high cost of maintaining and running the offices. Opportunities The capital of Australia is located within an agricultural area and a commercialized center. Victoria also houses as many as 3900 tourism based businesses. These are good for business as there is a market ready for import and export trade and the raw materials are also available. Threats -threats mainly arise from competition from existing import export businesses. -availability of a large capital base to maintain and start up the business 1.4.2 Pest analysis Political Government type and stability in Kaasagat Company ensures the environmental protection involved in ensuring that the hospital gives products which are healthy to its patients. i.e. the foods and beverages should not affect the customers in anyway. For it to achieve its objectives to meet the desires of customers in the hospital, it must be given the freedom to express itself and follow the rule of law and level of bureaucracy and corruption. The catering department is also affected by government regulations and de-regulations trends of the hotel industries that are required to be followed. Freedom of press, rule of law and levels of bureaucracy and corruption. Regulation and de-regulation trends. Social and employment legislation. Tax policy, and trade and tariff controls. Environmental and consumer-protection legislation. Likely changes in the political environment Economic: Stage of business cycle of the catering department of the hospital Current and projected economic growth, inflation and interest rate that affects the department Unemployment and labor supply that can be used to improve the quality and quantity of the industry of the catering department. Labor costs cost associated with rewarding of the caterers. Levels of disposable income and income distribution. Impact of globalization and competition from other catering departments. Likely impact of technological or other change on the economy of Armidel hospital Likely changes in the economic environment of this industry. Socio-Cultural: Population growth rate and age profile. Population health, education and social mobility, and attitudes to these. Population employment patterns, job market freedom and attitudes to work. Press attitudes, public opinion, social attitudes and social taboos. Lifestyle choices and attitudes to these. Socio-cultural changes. Technological Environment: Impact of emerging technologies. Impact of Internet, reduction in communications costs and increased remote working. Research & Development activity. Impact of technology transfer. 1.5 Human resource plan Kaasagat Company will be a business founded on the basis of offering better services than the existing import export business and also to expand. To create this it is essential to have competent sales personnel, accountants, and security and transport personnel. The sales personnel will be entrusted with the duty to advertise the business and reach as many clients. The accountants will have the duty to keep inventories and maintain records. The security and transport personnel will have the duty to delivery and to pick import or export goods. The employment of staff will be made on the basis of qualifications and competence. However, incompetent employees shall be eliminated from work regardless of their skills. On employment of new staff, the employees are trained on the fundamentals of the business that include brokering goods, how to maintain good customer relations. The payment of such employment will be made through the human resource manager who heads the labor force and answerable to the sole proprietor. These rules must be adhered to regardless of anything else. 1.6 Initial start up costs Just like any other businesses this business requires capital to operate so as to hold the business until it earns revenue that is acceptable to make the business independently operational. Other costs that are sure of arising as the business is running include:- -legal expenses such as taxation, government levies -insurances fee- It is important that the assets of the business are insured incase of damage and also the goods of the customers should be indemnified incase of any eventualities. -Rent-the business will need office premises to hold conferences in and also warehouses. This will add up to the rental fee. Since also the business has a few property it is important that it makes use of a means to transport cargo, this is only available on a rental basis. -accounting and book-keeping fees -advertisement fee-in order to make the business popular among the people it is important that sales personnel reach out to the people. Another method that could be used effectively includes the use of primary sources of information such as newspapers, magazines, the internet. -Non-cash assets fee Kaasagat Company is a sole proprietorship type of a business, it will therefore be owned by an individual who has the following responsibilities:- -naming the business to whichever name he finds appropriate and following jurisdiction. -he or she has unlimited liability for all the losses and debts incurred in the process of initializing the business and in the process of operating the business. -the sole owner can choose when to liquidate the business. -the sole owner collects all profits liable to taxation. -the sole owner represents the face of the business and therefore there is little or no legal differentiation between the owner of the business and the business as a legal entity. -the sole owner makes major decisions on how the business should be run. Under the sole proprietor is the human resource manager. He is the link between the employees and the sole proprietor and the responsibilities vested in him or her include the following: -employing qualified staff for the positions of sales personnel, secretaries, security agents. -training the employees on their job responsibilities and jurisdiction. -Paying the employees accordingly -organizing team building activities to build the workforce. -recognize the rights of each employee according to the legal jurisdiction. -firing employees for a number of reasons such as incompetence. -handling customer complaints. However, the sole proprietor has the responsibility of hiring and firing the human resource manager. Under the human resource manager are the employees who include accountants, security agents and sale personnel. All these employees will be divided into departments that include the accounts department, security department and the sale department. The accounts department has the duty to keep records of the business activities. The security department is mainly charged with the responsibility to ensure the safety of the import export goods this also includes transportation of the import export goods. The sales department employs sales personnel and also keeps inventories. The main responsibility of this department is to conduct sales activities between the customer and the business entity (Young 27). Chapter 2 2.0 INTRODUCTION Freight forwarding is a service that deals with international or multinational import and export. It acts as a link between the client and various transportation services. Freight forwarding services relieves the companies from multitude of carriers. The importance of this freight business is the concern of the weight and size of the shipment and the duration taken for goods to the destination 2.1 Mission It is the mission of Kaasagat Freight Company to exhaustively ship consultation and brokerage services. I.e. purchase contracts, shipping, warehousing and delivery. It will be concern with special and cultural freights. It is our long-term goal that we become the preferred freight company. Kaasagat understand that the freight shops and restaurant in the promise has to be attended to provide special features for the tourists to be flooding every year. 2.2 Keys to success Provide unique services to our customer for them to realize that we are better able to serve them competitively. Being close to our clients and create a long –term relationship. Ensure that there is a comprehensive service experience for our clients. 2.3 Objectives To achieve break-even by 11/2 years. To retain long term contracts with local freight shops To become the best importer in Australia Chapter 3 3.0 Company summary The company will be a limited liability partnership registered in Victoria, Australia for tax purposes. Its founders are Mr. Raymond Lelei, retired bank manager with Desmond Keitany. They are well versed with freighting for a number of years. This company has limited number of investors. It does not plan to be in public. Its main office will be found in Victoria, Australia. It contains a conference room and office spaces (Stutely 82). The company services are to be run by July. The customers are expected to be small freight shops in Victoria and the start- up farms to be from throughout the state. 3.1 Company ownership The company will have private investors who will own 20% of the company shares. Other to be owned by senior managers i.e. Mr.Ramond Lelei, 50%, Mr. Desmond Keytany, 30%. The other expected finances are to be gotten from bank loans. 3.2 Start-up summary The assets necessary in the beginning to support the running of the business are received from private investors. The company has received a loan from bank of Australia commercial investors, which can be paid off in 15 years. We also require start up finances as follows: Found in spreadsheets 3.3 Competitive analysis The company major competitors will be the general and united. Others: all-purpose and similar freight management companies. All these are existing corporations with their established market recognition factors. Their varying degrees of ultimate customer and agent member exist basing on pricing policies and their ability to deliver best services as expected. The companies are expected to provide differing transportation discounts negotiation contractual agreement, hardcopy market materials, accounts debited and accounts credited processes. They are also required to provide administrative support systems. The commission split rate should range between 40/40 to 45/70 with 25% to the managing corporation and 55% to agent member. 3.4 Target market The company target market will consist of mid –sized, independent and agent members of forwarders located in the top major metropolitan areas that grows aggressively and in a controlled manner. Agents will routinely handle shipment of 60-plusdollars at an average of 40% or better gross profit. It will excel on handling expedited and critical freight movements providing unique services, committed to their customers. It will exercise its values in the market place to value trust integrity and personal involvement for heir success. It will have operations, market and cash flow considerations that will be enhanced by aligning themselves with other competitors. The extensive communication, i.e. feedback, from agents will indicate a crucial need for a strong management company. Action plan Pre-Operational Incorporate business Negotiation and sign office lease agreement Set up office, furniture and equipment, telephone, suppliers, etc. Select and make order of computer systems and related software. Establish bank relationship Arrange for receivable finances Ensure necessary compliance by establishing legal and accounting relationships. Complete standard agent member contract. Insure the company Establish affiliation with a marketing/PR firm. Develop a critical marketing plan to identify and target potential agent members. Chapter 4 4.0 FINANCIAL PLAN Below is an attached income and cash flow projection for 3 years. Finances are based on receivables, loans and initial investments. Interest rate is 13.5%, cost of sale is 86.2%of gross revenues and it is based on payment of 54.3% for transportation costs and 25% commission. The financial plan follows the previous discussed market plan (McKeever 442). 5. Freight activity 5.1.1 Multimodal operation It should work on the organizational results on research activities related to freight movement. Freight organizational study in the first mode is underway. This mode will provide a template for focusing on other modes. A study on techniques, equipments and strategies are being looked at. 5.1.2 Motor carrier services Motor carrier services have taken an approach to deliver better customer by assigning a single agent to work with their transaction. An increase of over dimension and over weight permits to be delivered. 5.1.3 Transportation plan We are on with the planning partners on identifying and reviewing priorities that affect transportation system. There is a need to secure funds for transportation in future. We continue to locate good and reliable sources of data on freight volumes. Chapter 6 6.1 Business structures and functions 6.1.1 Obligation of a carrier Care and diligence To obey directions Conflict of orders Stowage and deviation Freight delivery Notice for undelivered freight Delivery place Consignee refusing acceptance 6.1.2 Care and diligence required A carrier of property for reward must use at least ordinary care and diligence in performing all his duties. A carrier with no reward should use at least slight diligence and care. 6.1.3 Obeying directions A carrier should comply with the directions of the consigner or consignee. In addition, an employee is bound to comply with those of his employer. 6.1.4 Conflict of orders It means that the directions of a consigner and consignee are conflicting. The carrier must comply to those of the consignor with due respect to all matters except the delivery of the freight as to which he must comply with the directions of the consignee. Unless the consignor has specially forbidden the carrier to receive orders from the consignee inconsistent to his, own. 6.1.5 Stowage and deviation A marine carrier should not stow freight upon deck during the voyage. He should not make an improper deviation from any delay n the voyage unless he is told. He cannot do any unnecessary act, which would avoid insurance in the usual form upon the freight (Harvard Business School 81). 6.1.5 Freight delivery The property of a carrier should be delivered to the consignee. The placed to be dropped at, should be addressed in the manner usual at the place. 6.1.6 Delivery place 1. If carried by sea from foreign country, may be delivered at the wharf where the ship moors. It should be within the reasonable distance from the place addressed. If there is no wharf on board a lighter a long, side the ship. 2. Otherwise, it must be delivered to the consignee or agent personally, with reasonable diligence. 6.1.7 Notice for undelivered freight Some cases, a crier can fail deliver freight to the consignee or agent personally. He must provide a notice to the consignee on its arrival and keep the same in safety. It is upon his responsibility as a warehouseman until the consignee can have a reasonable time to remove. 6.1.8 Consignee refusing acceptance If a consignee refuses to accept and remove freight within a reasonable time, after the carrier has fulfilled his obligation to deliver or duly offer to fulfill the same, the carrier can be free from liability by placing the freight n the customhouse (Ford, Bornstein and Pruitt 75). Chapter 7 7.1 RISK ASSESSMENT AND RISK MANAGEMENT a) The company should review operations to identify and record unsafe freight handling task b) Make sure that during the purchase of all new equipments, prime movers depots that a risk assessment is done c) Hazards, incident or injury reports should be reviewed to identify freight handling risks. d) Train staff on freight handling and ensure maintenance of the training records. e) Documentations should be reviewed an evaluation to be done on risk assessment and control options for each freight handling task. f) Advice/direct supervisors if need be. g) Forward the original copies of the documentation for the state manager and make copies for the supervisor. 7.1.1 Consultation between the employees and their representatives with the manager I. Keep checking the risks involved with unsafe freight handling task. II. Ensure that there is an immediate selection of controls to be put in place to prevent freight handling injuries (Abrams and Kleiner 75). III. Finish relevant documents and forward them to the operations manger. IV. Provide on job training on safe handling techniques. V. Feedback should be provided to employees about unsafe freight handling issues. 7.1.2 Tasks of employees Should report unsafe handling task. Should participate in risk assessment procedures and development of control measures. Apply training and control measure on freight handling. 7.1.3 Company manager tasks He should evaluate the risk assessment and the safe freight handling plan. He should confirm that control option ha been auctioned. He should have consultation with the operational manager and employees on health and safety representative if they fail to meet the regulations. Keep the records of completed training. Prepare reports Ensure that records are completely filed. Works Cited Abrams, Rhonda and Eugine Kleiner. The successful business plan: Secrets and strategies. New Jersey: The Planning Shop, 2003. Ford, Brian R, Jay Bornstein and Patrick T Pruitt. Erns and Young business plan guide. London: John Wiley and Sons, 2007. Harvard Business School. Creating a business plan: Expert solutions to everyday challenges. Boston: Harvard Business School Press, 2007. McKeever, Mike. How to write a business plan. Chicago: Nolo, 2010. Stutely, Richard. The definitive business plan: The fast-track to intelligent business planning for executives and entrepreneurs. New York: FT Press, 2002. Young, Paul. Business plan. New York: Global Media, 2007. Read More