The Course of Performing Business TDL Ventures - Research Paper Example

?Executive Summary In this case the scenario revolves around the strategic planning and its implementation in an entrepreneurial organization ly TDL Ventures. It is a non-profitable organization which supports handicapped people. It specially supports the people who are blind or people who are with weak vision. The main objective of the organization is to support these people to lead a healthy and autonomous life. This organization aims to incorporate the healthy life style within these visually challenged people by developing their mental, spiritual and physical level. The entrepreneur of the organization strongly believes that launching transportation service, incorporating leadership skills, personal development and healthy living training will offer these people a foundation for independent living. To fulfill these objectives the entrepreneur needs a strategic plan and an action plan for proper strategic plan implementation to develop this organization. This paper will make an attempt to form such a strategic plan and its implementation to achieve the objectives. Strategic planning TDL Ventures is an entrepreneurial non-profitable organization specially supporting the visually challenged persons. To develop business, this organization needs a strong strategic intent which will enable the organization to provide clarity about its actions to realize its future aspiration. This strategic intent will provide clarity, focus and inspiration at a time of hindrance to re-energize the staffs of this organization and rebuild the programs to achieve their vision and mission. Thus this organization needs to develop a plan with long-term view and take steps to implement this plan for effective and efficient functioning of the firm. To successfully achieve these long-term objectives TDL Ventures must develop strategic plans, operating plans, business plans and case statements. At first, a strategic plan has to be adopted which will guide the organization to effectively and efficiently fulfill its mission. It should mention the objectives of the organization and goals to be achieved. Then the prioritization of objectives along with mentioning the necessary steps of action and needful resources to achieve them are worked out. These strategic plans should be adopted for a longer time frame i.e. 3-5 years. Secondly, an operational plan needs to be formed to accomplish the goals mentioned precisely in the strategic plan. This plan will mention the time frames of the operations and the roles of individuals associated with it. This plan is generally for a short term period i.e. a fiscal year. After all these above mentioned plans are settled, the matter dealing with the performance and investments to generate income from the organizational services and products will get priority. To resolve this issue a business plan has to be formed which will include information about the services and products provided by TDL Ventures. It will also enable it to analyze the external environment and make assumption of the future revenue generation. The last and the most vital thing to be done is the formulation of case statement. It will help this organization in the fundraising and marketing issues. This case statement will mention the goals, strengths, capabilities and the benefits the organization provided to its clients. One of the major issues the case statement addresses is fund mobilization for TDL Ventures. It will enable it to secure funds from the NGOs, foundations, charitable trusts, corporate donations, charitable donors and the philanthropists. (Mittenthal, 2002; Sloner, Shepard, & Podolny, 2008, pp. 27-31) Implementation of the plans: Objectives of the organization TDL Ventures: To be a non-profitable organization providing social support to visually challenged people. To provide support for spiritual, physical and mental awakening of their clients. To develop the healthy and independent lifestyle within their clients. To guide their clients to achieve success in every aspects of life. Tasks and task ownership: In this case it is an entrepreneurial business which will just start its functioning. So, the entrepreneur acts here as CEO and forms all the strategic intent by himself i.e. vision, mission, goals, objectives etc. and under him different departments are required to perform the activities and achieve the goals. So there should be different departments in the field of finance & accounting, business development & fund mobilization, facilities management and HR & administration. Other than these there should be departmental staffs related to counseling, training and development of clients. Organization structure CEO Finance & Accounting Business Development & Fund Mobilization Facilities Management Human Resource and Administration Customer Service Staff for finance related and accounting works. For promoting the organization and fund raising works. Supervision of staffs for maintenance of facility & transport vehicles and housekeeping works of the organization. For recruitment of staffs, integration of all the departments for better functioning and strategic planning. Spiritual advisors, Counselors, Motivators, and transporters. (Pearce & Robinson, 2011, pp.359-361) Resource allocation: The resources of the organization are mainly of two types, human resources and financial resources. The human resources are to be allocated according to the organizational structure mentioned earlier. As the organization is in its budding stage the entrepreneur must appoint at least one person in each department at the managerial level staff. This will help to expand the departments in future according to the needs of the firm. But the facilities management and customer service department should be comprised of a group of staffs capable to perform the duties assigned to them. As mentioned earlier, one of the major resources of the organization is financial resource. Appointing an experienced person with strong corporate contacts as business developer will be conducive for the firm. The finance & accounting position also needs a sincere person who will help in better maintenance of all the financial transactions. This is very important because the donors get tax exemptions from the governments and so the accounts are to be audited each year by an external audit firm (NFB, 2010, pp.26-27). Most of the business is based on customer service of training, development and motivation of the clients; good spiritual advisors, motivational speakers and counselors are to be roped in as part-timers. To synchronize and integrate all these system, a dynamic candidate interested in social activities should be hired in the human resource and administration department. Financial forecasts for the company: Forecasted Cash Budget for a Period of four years from the starting of the business: Particulars Year 1(in $) Year 2 (in $) Year 3 (in $) Year 4(in $) Cash balance(beginning) 50,000 40,000 40,000 42,355 Add: Receipts Voluntary receipts 2,50,000 2,70,000 3,24,000 3,95,280 Investment income 5,000 6,400 7,360 8,832 Incoming resources from charitable activities 1,62,500 2,08,000 2,45,440 2,84,710 Total Receipts (A): 4,17,500 4,84,400 5,76,800 6,88,822 Total Cash available 4,67,500 5,24,400 6,16,800 7,31,177 Less: Expenses Fixed Expenses 60,000 60,000 60,000 60,000 Variable Expenses: Costs of generating voluntary income 1,75,000 1,54,000 1,41,680 1,37,429 Fundraising costs 17,500 16,100 15,778 15,462 Services and Programs costs 4,12,500 3,63,000 3,23,070 3,06,916 Other expenses 7,500 6,900 6,417 5,903 Total Expenses (B): 6,72,500 6,00,000 5,46,945 5,25,710 Excess/deficiency of cash available (2,05,000) (75,600) 69,855 2,05,467 Financing: Borrowings 2,45,000 1,15,600 - - Payments - - (25,000) (1,30,000) Interest - - (2,500) (13,000) Total financing (C ): 2,45,000 1,15,600 (27,500) (1,43,000) Ending Cash Balance 40,000 40,000 42,355 62,467 The minimum cash balance is expected to be maintained at $40,000. Accordingly, in short of cash balance borrowings would be required. According to merit, experience of the candidates and their job profile the compensation packages should be allocated considering the limitations of the organization. Budget allocation for operating expenses, promotional expenses of the organization, different blindness integration program, advocacy for blinds and fighting for the civil rights of the visually challenged also finds a very important place in the balance sheet of the company. Break-even Chart: (the figures are in dollars) The intersection point between total costs and revenue gives the breakeven point for the company. Functional Tactics: The functional tactics of TDL Ventures are to be focused in the areas of decision taking about the facility of the organization, equipments needed and operations planning. Here this organization is in the budding stage of business so it should have a medium sized facility with comfortable atmosphere for clients. The equipments like computers should be used for keeping financial and operational records. In the area of operational planning the organization should be punctual about their transportation service and other services towards the clients. The organization must also give special attention to the clients so that the visually challenged people do not feel unattended. Other than advertising to promote the organization they can provide t-shirts for the clients with the name of the organization and its mission statement. These t-shirts can be also distributed in the blind schools. It will enable generation of awareness of the organization among the guardians of the less fortunate people. Creating a website about the organization or raising funds from public places like shopping malls or transport depots i.e. bus depots, train stations etc. will also help to promote the organization (Pearce & Robinson, 2011, pp.347-348) Action items: To accomplish the goals of this organization action items or operating plans are needed. These include appointing personnel for the operations and framing the tentative time span for achieving the objectives. As the organization is in a budding stage the most important step is to develop it by promoting and incorporating active members who will support it to achieve its goal. It is to be done by each and every person associated with this organization as a continuous task. They should also try to reach a client base of 20 within two months of initiation. Then the issue of resource mobilization appears and within the first quarter the organization should generate a pool of at least 30 funding sources. Milestones and a deadline of TDL Ventures: To reach a client base of 100 in the first year. Then for market penetration an annual increase of 20% of client base for coming 4 years must be achieved. To generate a pool of 100 active fund resources and increasing it by 20% annually in the next 5 years. Expansion of the business by developing new market is a top priority. At least two new branches should be established within next 5 years. Risk Management: In the course of performing business TDL Ventures may face various risks arising due to financial failure, failure in its objectives and risks from economic crisis i.e. decline in government funds, social and political instabilities etc. It can also face uncertainty due to entering in new venture, changing its capacity and entering into collaboration. The risks from new ventures and change in capacity can be reduced by entering into agreement with other similar firm. So, risk will be reduced without sacrificing much profit. Collaboration without mutual agreement and negotiations on issues may lead to failure but with a fair understanding between the companies leads to success. (Young, 2006) References 1. Mintzberg, H., Ghoshal, S., Lampel, J., & Quinn, J. B. (2003). Thestrategy process: Concepts, contexts, cases (4th ed.). Upper Saddle River, NJ: Prentice Hall. 2. Mittenthal, R. (2002), Ten Keys to Successful Strategic Planning for Nonprofit and Foundation Leaders, Retrieved on June 30, 2011 from: http://www.tccgrp.com/pdfs/per_brief_tenkeys.pdf 3. NFB (2010), National Federation of the Blind 2010 Annual Report, Retrieved on June 30, 2011 from: http://www.nfb.org/nfb/Resources.asp?SnID=2081526908 4. Pearce, J. A., II, & Robinson, R. B. (2011). Strategic management: Formulation, implementation, and control (12th ed.). Boston, MA: McGraw-Hill/Irwin. 5. Sloner, G., Shepard, A., & J. Podolny (2008), Strategic Management, New Delhi: John Wiley & Sons 6. Young, D. (2006), Nonprofit Studies Program Retrieved on June 30, 2011 from: http://aysps.gsu.edu/nonprofit/working/NSPwp0603.pdf Read More