Offering Charter Yachts for Holidays - Essay Example

Reflection on Group’s Business Plan Background on Business Plan The group proposed a business about offering charter yachts for holidays to ply the Caribbean and the Mediterranean routes at identified seasons during the year. The plan identified its aim, objectives, company structure, financial assumptions, marketing aspects, target market, competition, and finally, recommendation and future work. The plan included schematic structure of the company and tabular computations of relevant components of expenses, among others. Recommendation and future work focused on possible expanding to Asian and Australian markets after five years. Personal Reflection The business plan was actually well structured as it clearly delineated sub-topics to present relevant aspects of the plan. However, upon closer review and evaluation, the following concerns were noted as portions which can still be improved: 1. Company Process and Locations This portion could be subdivided into Company Background, in general and Details of the Business Plan (which should discuss the 4Ps in marketing: product (or service), place (or target market), price and promotion). The statement and explanation about the two months of April and September (when the yachts would not sail) were not very clear. Readers could be confused as to the nature of the activities during these two months. 2. Yacht Types The paragraph indicated the types of yachts to be purchased and used by the company. It can be presented in a tabular form for more clarity, as stated below: TYPE OF YACHT SPECIFICATIONS Length Capacity Crew Children Beneteau First 40 12.5m 10 pp 2 4 Beneteau First 27.2 8.5m 8 pp 2 3 Beneteau First 25.7 8 m 6 pp 2 2 3. Company Plans The portion discussed the 4Ps in marketing including proposed service (product), price, promotion, and should therefore be titled Marketing Aspects. However, it did not specify the proposed company name for the service or plan being introduced. The company structure could be placed under a new sub-heading like Human Resources Aspects. The head of Administration was relegated as a secretary for the company which should not be because the function entails management of human resources functions such as recruitment, maintenance and development of personnel. Also, the top honcho, the business manager’s responsibilities were not indicated. Would he take care of the marketing aspects of the new service? The responsibilities of the operations manager were somewhat unclear as it indicates him as the person “who is in charge of the company work and spending the money to accomplish his work for the company”. 4. Financial Assumptions It is proposed that this heading be revised to Financial Aspects by initially presenting a pro-forma income statements for the business by stating projected revenues and expenses (as well as their respective components) to finally indicate the bottom-line or the net income or net loss over the five year period. Afterwards, the financial assumptions should appear to provide explanations for the financial figures indicated in the projected financial income statements over five years. 5. Marketing The discussion focused on promotions portion and failed to present detailed explanation on the other Ps (product (or service), price and place. The booking office could have been discussed under Company Background. 6. Market This portion should provide a clearer identification of who in particular is the business targeting: the working class or professionals with high income level? Is it the middle income group? Or is the company targeting families with children? Their pricing strategies would likewise depend on the target group as the price range for their services should cater to the income group of their target market and the amenities offered in their services. The explanation in the business plan was more on strategies (including food services, photos in brochures, payment schemes, and feedback mechanisms). These could be discussed under a new sub-heading called Marketing Strategies. 7. Competition The discussion likewise focused on strategies to meet competitive pressures. It should somehow include the names of companies or organizations that provide the same service as they do plying the same route. By identifying them, more or else, an analysis and evaluation can be determined regarding their size and strategies employed in terms of price and amenities to determine if their strategy is competitively designed. 8. Recommendation and Future Work The discussion in this portion relied on the five-year plan which was not even indicated, nor presented within the business plan. The future plan of expanding target markets to Asia and Australia could only be justified and supported by any increases in net income by the 3rd to the 5th year of operations. Overall, the business plan prepared by the group was not completely in line with one’s personal expectations after a close examination and review. Proposed Business Plan If I were to work on a business plan, I propose to follow the structure below: Executive Summary: to briefly state the plan and to specify the general goal and specific objectives, as required. The executive summary would describe the plan, market, potentials, funding requirements, and future prospects, among others. Brief Company Background: to specify the type of business (if it is a sole proprietorship, partnership or corporation), and the stage of development it is in (introductory stage, growth or maturity), and the product or service it currently or proposed to offer. This portion would indicate the current location of the head office to serve the needs of the customers. Finally, the company background must indicate the mission and vision of the business to determine its direction and future short term and long term goals. Details of the Business Plan or Concept 1. Marketing Aspects a. Product (Or Service) : Charter Yacht Services Destination: Point of Origin Routes Destination Time Frame/Seasons for Travel b. Place: target market : Professionals Families c. Price: rate per adult, rate per child, rate per family Rate if travelling with crew, etc. d. Promotion: Kinds of advertisements and mediums Internet, Print Ads (newspapers, travel magazines, brochures), TV ads, and through travel agencies. e. Competitors f. Marketing Strategies Specify the strategies to increase competitive advantage. 2. Human Resources Aspects The human resources aspects are crucial to be included in the business plan because human resources are actually the most important resource in an organization. The company chart should clearly indicate the duties and responsibilities of each personnel to determine the roles that each would play in achieving corporate goals. Through identification of responsibilities, one would assess the competencies of personnel assigned for each job. As much as possible, the people identified to assume crucial responsibilities should be indicated, together with the respective qualifications and experience in respective fields. The portion should also identify any weaknesses in the structure in terms of competencies of chosen personnel, or the need to increase or decrease the number of proposed people, as experience would further provide. The competencies of the business manager must be examined to determine the capability to push through with the proposed service depending on qualifications, experience, or other skills. 3. Financial Aspects This portion should clearly present a projected income statement over the five year period to incorporate revenues and expenses components and to indicate the projected net income or loss. The financial assumptions would be presented as endnotes to the financial statements to state the assumptions used for arriving at revenues, salaries and wages, maintenance expenses, overhead (utilities), advertisements, and other crucial components to arrive at a computation of the net income or loss for the periods under study. Through a presentation of projected financial income statements, the readers would be given the opportunity to determine the feasibility and viability of the proposed business plan. Likewise, management would be provided with an accurate picture of the areas which need to be improved: sources of working capital to sustain the business; is there a need to adjust the number of personnel; do they need to increase or decrease the price for the service to be more competitive in the market; how many clients do they need to break-even; what costs can be controlled or minimized to maximize their revenues? These questions can be further reviewed and evaluated by structuring the financial components of the business plan according to the proposed five year projected income statements 4. Operational Details Details of day to day operations need to be ironed out in terms of governing responsibilities on taking charge of marketing the service and maintaining the safety of the yachts. The responsibilities of the operations manager must be made very clear and delineated with responsibilities in terms of ensuring the safety and maintenance of the yachts. The business manager’s responsibilities must likewise be clearly indicated to avoid confusion and to ensure proper accountability of tasks. Measurement of accomplishment towards organizational goals could be clearly evaluated with proper job responsibilities and accountabilities of work. 5. Future Prospects Future prospects must be made in line with the identified mission, vision, and goals of the company. With the assistance of well prepared financial projections, properly designed organizational structure, and clearly delineated tasks and responsibilities, the implementation and measurement of success of the business plan would pave the way for a proper identification of long term prospects. Read More