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The Saga Operations and Budget Forecast, Business Plan Example

Pages: 6

Words: 1724

Business Plan

Section Overview

The position of the business in the market is an important indicator on what an organization will become in the future; hence, it is very important to make sure that the aspects of development be carefully measured hence imposing the possibilities that they are assumed to take into consideration. As for SAGA, the industry it intends to be involved with is specifically designed to conceive specific challenges especially in consideration with the status of operation it hopes to embrace. Within the documentation presented herein, it could be analyzed how the different corporate strategies to be taken into consideration by SAGA shall be planned carefully.

VI.A Support Strategies for Your Recommended Corporate-Level Strategy

Functional-Level Strategies

The functional level strategies that SAGA is supposed to take into account involve the operational assumptions that the company needs to plan about especially from the point of its start-up process in relative connection towards the procedures of its growth within the industry (in location) and even at the point of its expansion. Controlling several aspects of operation is expected to make a definite indication on whether or not the company would actually grow and move forward to further progress.

Purchasing

The purchasing operation of the company shall involve the point of buying the necessary computer-based equipments that are directed towards the development of the company. These computer equipments are assumed to impose efficiency on the operation of SAGA especially in consideration with the need to track down the freight pathways and time-span of each order that they are aiming to complete for their clients.

Another aspect of purchasing that the company might need to undergo involves the regular supplies of the company for their office space. These supplies should be considered as a regular part of the purchasing activity of the company hence shall be given specific financial allowance every month. Recording of such particular purchases are better done through computerized and well-developed systems that are expected to make definite approach in assuring that all the elements of company operation are properly measured and calculated with full efficiency.

Production

There is not much of a specific focus on production aspect as the company is more on providing service than providing product. Hence, in consideration with this factor of operation, servicing procedures shall be taken into specific concern especially when it comes to scheduling of transport and keeping client records. UThe service point of the organization is its main bloodline that connects it with the society it hopes to grant attention to. The level of understanding that the company should place upon this matter should be assumed to have a great impact on the business’ growth.

Marketing

As noted, while marketing through publications like business magazines and local newspapers would help the company become recognized by the society prove to be specifically helpful, it should be realized that these are only basic forms of marketing that would be able to get a the attention of prospect clients from the target markets (mainly that of the suppliers of mineral raw materials and that of the construction operators in the industry). However, it is the online marketing form that is expected to reap great rewards for the organization as it is the one that shall reach a larger scope of the market. Through this expanding the operations of the business would become much possible.

Distribution

Reaching out the right clients is one aspect of “distribution” that the organization should be able to conceive. It is undoubtedly important that when it comes to this aspect of the business’ growth, the focal point is directed towards the capability of the organization to reach and serve their clients properly. It is only through this that they would be able to build up their reputation in the industry and gain attention from the people that they ought to serve and the companies they ought to operate in alliance with. With the utilization of computer-empowered system, reaching out to the right people and serving them with efficiency becomes a possible source of business benefit. With the aspect of business development, widening the scope of effect that the business operates along with is a crucial stage of growth.

Business-Level Strategies

The business level strategies aspect of SAGA’s business plan is defined to be the primary procedures that the business ought to take into consideration, especially when it comes to gaining a particular position in the market or the industry it hopes to operate in. With the proper ways of defining its capabilities through good and efficient service operations, it is hoped that SAGA would gradually climb the ladder of development that it hopes to embrace as it prepares to enter the global scene of freight industry.

Market Positioning

As any other beginning business operations, SAGA is expected to struggle for the first few months of its operation. At some point, the allowance of adjustment that is given for the organization to consider is stretched up to two years. Nonetheless, it could be analyzed that with ample establishment of a good name through good service, such a point of adjustment could be further shortened. Specifically serving the local industry at first, the company is supposed to take any particular precaution needed to make sure that they are able to meet the industry standard and the expectations of their clients as well; although at times, it very important to take note that the clients’ expectations are exceeded by the company. Giving loyalty benefits to regular clients could be one aspect of assurance and support that the business could give for its target market.

Global-Level Strategies

Expansion on the outskirts of the main branch office of the business towards the international scope of operation is one big step towards progress. This however should be taken seriously and carefully by the company as this shall involve higher amounts of investment that should be well prepared for. Considering global operation should be based upon the current stance of the business in the current industry and how it specifically manages to perform well for its local clients. Some of the considerations to be met are as follows:

Plans of international Expansion

  • What is the target international market?
  • On what region shall the service be extended to?
  • On what aspects of business status shall this decision be based upon?
  • What international strategies should be considered in relation to this process of expansion?
  • How shall the business operate in the international market? Through merger-acquisition or through simply creating an alliance with another local freight service provider in the area being targeted?
  • What definite courses of development should be prepared by the organization?

These are the questions that must be given proper attention to by the business especially in considering the possibilities of international expansion. Knowing the target region to be served shall help the business administrators identify the primary competitions and challenges they have to face which further allows them to set the position that they hope to take into consideration.

Strategic Alliances

To reduce huge investments and the need to impose new policies to support an international operation, it would be best for SAGA to create partnerships around the country hence making it easier for the freight operations to occur within a shorter span of delivery. This would be far better than that of delivering the packages directly from the base outlet of the company toward its destinations abroad. At this point, reducing the cost of expenses for operation is a crucial step to take.

VI.B. Organization and Financial Issues

Business operations are expected to cost something. Being able to assume how much the developmental process would cost could become a source of strength for the company or if not handled properly could become a source of its failure. To note, SAGA needs to consider four aspects of expenses which are to be further defined as follows:

Three-Year Budget/Cost Projection for Company Finances(Set in a Monthly-projection towards a three-year allowance definition)

  • Legal Fees: These fees shall involve corporate formation, the generation and the review of contracts between partners and employees and the registration of the business itself in the freight industry in its main branch operation.
  • Marketing Fees: These shall involve the published marketing fees as well as that of the online-operation of the organization over the internet.
  • Accounting Fees: these fee shall be further incurred in the course of coming up with ample accounting projections that are needed to help the company measure their assumptions of profiting from the operation and the possible cases of losses on completing some particular client-orders.
  • Trade Association Dues: in consideration with the trade operations that the business is to be engaging with both local [and internationally], there are some fees that ought to be noted and paid for.

Expected Monthly Operational Expenses

Legal Fees:

Ø  Registration and contract forms for establishment of the organization

Ø  Contract with Trucking Company

 

 

$104.00

 

 

$35.56

Marketing Fees:

Ø  Subscription to local journals and newspapers as well as building magazines

Ø  Website generation and maintenance

 

 

 

$35.00

 

$104.00

Accounting Fees:

Ø  Generation of computerized accounting program customized for the needs of the company

 

 

 

(One time payment)$112.00

Trade Association Dues: (to be prepared for) $234.00
Regular operation expenses:

[includes regular city services, and regular maintenance of the office branch of the business as well as paying for the regular supplies the organization needs to operate/also includes rent, utilities, insurance, wages and truck rents for deliveries]

 

$2224.56

 

 

Employee Salary and Incentives $1000.00
Miscellaneous Expenses

[involves other meetings and orientation sessions or programs the company holds for its employees]

 

 

 

$400.00

Total expenses for the first month: $4214.12
2214.12-112 [onetime payment for the software to be used on the accounting programs to be installed as part of the company’s networked financial operations]=  $4102.12
$4102.12     (11 months)= $45,123.32
Total Cost of Expenses during the first year of operation=($4214.12 +$45,123.32)=$49,337.44
Expected cost of expenses per year after startup:  $4214.12 (12)=$50, 569.68
Expected cost of expenses of the following two years of operation: $ 50, 569.68(2)= $101,139.36
Expected Cost Projection for the First Three years of Operation:

$49, 337.44+50,569.68=$99,907.12

References

Bent Flyvbjerg, Mette K. Skamris Holm, and Søren L. Buhl (2002),”Underestimating Costs in Public Works Projects: Error or Lie?” Journal of the American Planning Association, vol. 68, no. 3, 279-295.

Eric S. Siegel, Brian R. Ford, Jay M. Bornstein (1993), ‘The Ernst & Young Business Plan Guide’ (New York: John Wiley and Sons).

Pilkington, A.  (1980-2006). The Evolution of the Intellectual Structure of Operations Management: A Citation/Co-Citation Analysis. Journal of Operations Management.

Wilson, J.M. (1995). A historical perspective on Operations Management. Production and Inventory Management Journal.

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